Booklet – LIBOR Transition- Valuation Guide brought out by ICAI and ICAI RVO –

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

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First Edition : February, 2022
Committee/Department : Valuation Standards Board
E-mail : valuationstandards@icai.in
Website : http://www.icai.org
Price : Rs. 50 /-
Published by : The Publication Department on behalf of The Corporate Laws &
Corporate Governance Committee, The Institute of Chartered
Accountants of India, ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi-110002

LIBOR, the London Inter-Bank Offered Rate, is the most widely used IBOR in financial
transactions globally. Cessation of LIBOR has initiated a worldwide transition of financial
institutions from old benchmarks to new Alternative Reference Rates (ARR). This transition
will impact the existing exposures as well as any future contracts using LIBOR as a reference
rate and will also require changes in systems, processes and tax and accounting treatment at
entities that uses financial instruments.
This booklet “LIBOR Transition – Valuation Guide” provides a brief summary of LIBOR history and way forward post its cessation and also highlights key points to be considered by Registered Valuers and Stakeholders as a part of this transition. Since LIBOR has been used for long, this transition will be a complex exercise for banks and entities using financial instruments. I extend my appreciation to the members of the Valuation Standards Board (VSB) of ICAI under the Chairmanship of CA. Anil S. Bhandari, Vice Chairman CA. M. P. VijayKumar and my colleagues on the Board of ICAI Registered Valuers Organisation (ICAI RVO) Shri Pawan Singh Tomar, Shri Ashok Haldia, Prof. Anil Saini, CA. Nihar N. Jambusaria & CA. Prafulla P. Chhajed for their collective efforts and support. I also appreciate the efforts of Shri. Rakesh Sehgal, Managing Director ICAI RVO assisted by CA. Sarika Singhal, Officiating CEO ICAI RVO and Secretary, Valuation Standards Board and
Ms. S. Rita, Deputy Secretary ICAI for their significant contribution in finalisation of this booklet. I am confident that the members and other stakeholders will find this publication useful in guiding and supporting them in their professional endeavour.