Last month the International Accounting Standards Board (IASB) published an exposure draft on the interest rate benchmark reform.

Generally speaking, until now an overnight interest swap (OIS) curve was used as a discount curve in order to price different financial instruments. However, given that the Federal Reserve has recently come up with a project around alternative reference rates (ARR) - the secured overnight finance rate - this could potentially have a significant impact on how the balance sheet is valued, especially for financial institutions.