imported>Doug Williamson |
imported>Doug Williamson |
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| ''Reference rates.'' | | ''Financial reporting - impairment'' |
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| (Euro Interbank Offered Rate).
| | The higher of fair value less costs of disposal and value in use. |
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| Sponsored by the European Money Markets Institute ([https://www.emmi-benchmarks.eu/ EMMI]), EURIBOR® is a formal benchmark or reference interest rate launched in 1998.
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| | Recoverable amount is a figure that recognises we have a choice about what to do with an asset. |
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| It estimates the all-in, simple interest rate (including credit premium and liquidity premium) at which euro denominated interbank term deposits for spot value (T+2) are offered within the euro-zone by one prime bank to another prime bank in the period before 10.45 [[CET]] each business morning.
| | We can either: |
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| EURIBOR is calculated for periods ranging from one day to one year. It is quoted to three decimal places and on an actual/360 day-count.
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| | (1) Sell it; or |
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| Also written 'Euribor'.
| | (2) Carrying on using it. |
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| EMMI continuously reviews the basis of EURIBOR, striving to improve it.
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| | Rationally, we would always make the choice that results in the greater value for the business. |
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| :<span style="color:#4B0082">'''''Robust fallback language for EURIBOR'''''</span>
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| :"... the working group on euro risk-free rates has been working extensively to identify best practices for contract robustness in contracts and financial instruments referencing EURIBOR.
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| :Although EURIBOR is not scheduled to be discontinued, the development of more robust fallback language addressing the permanent discontinuation of EURIBOR can help to enhance legal certainty and reduce the risks stemming from the worst-case scenario and, at the same time, comply with the EU Benchmark Regulation (BMR), when applicable."
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| :''Recommendations by the working group on euro risk-free rates - European Central Bank - 11 May 2021 - p2''
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| ==Contributing rate estimates==
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| Since 2013, a panel of banks contribute to the Euribor. The panel is made up of:
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| * Banks from EU countries participating in the euro from the outset.
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| * Banks from EU countries not participating in the euro from the outset.
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| * Large international banks from non-EU countries but with important euro zone operations.
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| The banks submit their estimate, to two decimal places, of the rate "at which euro interbank term deposits are being offered within the Eurozone by one prime bank to another at 11 am Brussels time" ("the best price between the best banks").
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| This is similar to the question for [[LIBOR]] contributing banks prior to reform of LIBOR in 1998 to improve accountability of contributing banks for the submitted rate.
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| EMMI publishes a [http://www.euribor-ebf.eu/assets/files/Euribor_code_conduct.pdf code of conduct] for contributing banks.
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| ==Euribor calculation==
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| In calculating the Euribor from the submitted rates, the highest and lowest 15% of submitted rates are ignored and the central 70% remaining is averaged and published to 3 decimal places.
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| Thomson Reuters is the screen service provider responsible for computing and also publishing Euribor.
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| The Euribor process is overseen by a [http://www.euribor-ebf.eu/euribor-org/steering-committee.html Steering Committee].
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| == See also == | | == See also == |
| * [[Benchmark]] | | * [[Carrying value]] |
| * [[Benchmarks Regulation]] (BMR) | | * [[Fair value]] |
| * [[Bloomberg]] | | * [[IAS 36]] |
| * [[Contract]] | | * [[Impairment]] |
| * [[EONIA]] | | * [[Value in use]] |
| * [[€STR]]
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| * [[Euro LIBOR]]
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| * [[European Central Bank]]
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| * [[European Money Markets Institute]]
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| * [[Fallback]]
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| * [[Financial instrument]]
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| * [[InterBank Offered Rate]]
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| * [[LIBOR]]
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| * [[Reference rate]]
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| * [[Reuters]]
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| * [[Risk-free rates]]
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| * [[TIBOR]]
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| ==External link==
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| [https://www.ecb.europa.eu/pub/pdf/other/ecb.recommendationsEURIBORfallbacktriggereventsandESTR.202105~9e859b5aa7.en.pdf Recommendations by the working group on euro risk-free rates on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates - European Central Bank - 11 May 2021]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:The_business_context]]
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| [[Category:Manage_risks]]
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