The LIBOR transition impacts tax and transfer pricing (TP) related documentation, agreements and systems enablement significantly. Successfully mitigating this impact requires planning and the joint effort of internal and external stakeholders.
One challenge to preparing for the LIBOR phaseout is selecting the appropriate credit adjustment spread. Understanding the differences between IBORs and RFRs is essential and you’ll need to consider these aspects when adjusting client contracts or when assessing valuation impacts.
The LIBOR will be replaced by risk-free reference interest rates by 2021. Swiss companies will have to analyze the impact in order to make a successful transition.