Appendix B
<Strong>Application guidance</Strong>
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>SCOPE (CHAPTER 2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2.5Financial guarantee contracts may have various legal forms, such as a guarantee, some types of letter of credit, a credit default contract or an insurance contract. Their accounting treatment does not depend on their legal form. The following are examples of the appropriate treatment (see paragraph 2.1(e)):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>RECOGNITION AND DERECOGNITION (CHAPTER 3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Initial recognition (Section 3.1)
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B3.1.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.1.2The following are examples of applying the principle in paragraph 3.1.1:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Regular way purchase or sale of financial assets
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B3.1.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.1.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.1.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.1.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Derecognition of financial assets (Section 3.2)
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B3.2.1The following flow chart illustrates the evaluation of whether and to what extent a financial asset is derecognised.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Arrangements under which an entity retains the contractual rights to receive the cash flows of a financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients (paragraph 3.2.4(b))
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B3.2.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Evaluation of the transfer of risks and rewards of ownership (paragraph 3.2.6)
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B3.2.4Examples of when an entity has transferred substantially all the risks and rewards of ownership are:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.5Examples of when an entity has retained substantially all the risks and rewards of ownership are:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Evaluation of the transfer of control
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B3.2.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.8The transferee has the practical ability to sell the transferred asset only if the transferee can sell the transferred asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without imposing additional restrictions on the transfer. The critical question is what the transferee is able to do in practice, not what contractual rights the transferee has concerning what it can do with the transferred asset or what contractual prohibitions exist. In particular:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Transfers that qualify for derecognition
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B3.2.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Transfers that do not qualify for derecognition
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B3.2.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Continuing involvement in transferred assets
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B3.2.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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All assets
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(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Assets measured at amortised cost
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(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Assets measured at fair value
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(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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All transfers
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B3.2.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Examples
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B3.2.16The following examples illustrate the application of the derecognition principles of this Standard.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.2.17This paragraph illustrates the application of the continuing involvement approach when the entity's continuing involvement is in a part of a financial asset.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Derecognition of financial liabilities (Section 3.3)
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B3.3.1A financial liability (or part of it) is extinguished when the debtor either:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.3.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.3.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.3.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.3.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.3.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3.3.7In some cases, a creditor releases a debtor from its present obligation to make payments, but the debtor assumes a guarantee obligation to pay if the party assuming primary responsibility defaults. In these circumstances the debtor:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>CLASSIFICATION (CHAPTER 4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Classification of financial assets (Section 4.1)
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The entity's business model for managing financial assets
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B4.1.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.2 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.2BAn entity's business model for managing financial assets is a matter of fact and not merely an assertion. It is typically observable through the activities that the entity undertakes to achieve the objective of the business model. An entity will need to use judgement when it assesses its business model for managing financial assets and that assessment is not determined by a single factor or activity. Instead, the entity must consider all relevant evidence that is available at the date of the assessment. Such relevant evidence includes, but is not limited to:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A business model whose objective is to hold assets in order to collect contractual cash flows
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B4.1.2C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.3 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.3B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
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B4.1.4 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.4B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.4C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Other business models
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B4.1.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Contractual cash flows that are solely payments of principal and interest on the principal amount outstanding
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B4.1.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.7 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.7B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Consideration for the time value of money
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B4.1.9 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.9B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.9C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.9D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.9E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Contractual terms that change the timing or amount of contractual cash flows
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B4.1.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.11The following are examples of contractual terms that result in contractual cash flows that are solely payments of principal and interest on the principal amount outstanding:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.12Despite paragraph B4.1.10, a financial asset that would otherwise meet the condition in paragraphs 4.1.2(b) and 4.1.2 A(b) but does not do so only as a result of a contractual term that permits (or requires) the issuer to prepay a debt instrument or permits (or requires) the holder to put a debt instrument back to the issuer before maturity is eligible to be measured at amortised cost or fair value through other comprehensive income (subject to meeting the condition in paragraph 4.1.2(a) or the condition in paragraph 4.1.2 A(a)) if:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Contractually linked instruments
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B4.1.20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.21In such transactions, a tranche has cash flow characteristics that are payments of principal and interest on the principal amount outstanding only if:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.24The underlying pool of instruments may also include instruments that:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Option to designate a financial asset or financial liability as at fair value through profit or loss (Sections 4.1 and 4.2)
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B4.1.27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Designation eliminates or significantly reduces an accounting mismatch
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B4.1.29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.30The following examples show when this condition could be met. In all cases, an entity may use this condition to designate financial assets or financial liabilities as at fair value through profit or loss only if it meets the principle in paragraph 4.1.5 or 4.2.2(a):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis
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B4.1.33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.1.36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Embedded derivatives (Section 4.3)
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B4.3.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.5The economic characteristics and risks of an embedded derivative are not closely related to the host contract (paragraph 4.3.3(a)) in the following examples. In these examples, assuming the conditions in paragraph 4.3.3(b) and (c) are met, an entity accounts for the embedded derivative separately from the host contract.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.8The economic characteristics and risks of an embedded derivative are closely related to the economic characteristics and risks of the host contract in the following examples. In these examples, an entity does not account for the embedded derivative separately from the host contract.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Instruments containing embedded derivatives
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B4.3.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Reassessment of embedded derivatives
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B4.3.11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.3.12Paragraph B4.3.11 does not apply to embedded derivatives in contracts acquired in:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Reclassification of financial assets (Section 4.4)
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Reclassification of financial assets
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B4.4.1Paragraph 4.4.1 requires an entity to reclassify financial assets if the entity changes its business model for managing those financial assets. Such changes are expected to be very infrequent. Such changes are determined by the entity's senior management as a result of external or internal changes and must be significant to the entity's operations and demonstrable to external parties. Accordingly, a change in an entity's business model will occur only when an entity either begins or ceases to perform an activity that is significant to its operations; for example, when the entity has acquired, disposed of or terminated a business line. Examples of a change in business model include the following:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.4.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4.4.3The following are not changes in business model:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>MEASUREMENT (CHAPTER 5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Initial measurement (Section 5.1)
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B5.1.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.1.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.1.2 AThe best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price (ie the fair value of the consideration given or received, see also IFRS 13). If an entity determines that the fair value at initial recognition differs from the transaction price as mentioned in paragraph 5.1.1 A, the entity shall account for that instrument at that date as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Subsequent measurement (Sections 5.2 and 5.3)
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B5.2.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.2.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.2.2 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Investments in equity instruments and contracts on those investments
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B5.2.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.2.4Indicators that cost might not be representative of fair value include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.2.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.2.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Amortised cost measurement (Section 5.4)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Effective interest method
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B5.4.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.2Fees that are an integral part of the effective interest rate of a financial instrument include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.3Fees that are not an integral part of the effective interest rate of a financial instrument and are accounted for in accordance with IFRS 15 include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Transaction costs
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B5.4.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Write-off
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B5.4.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Impairment (Section 5.5)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Collective and individual assessment basis
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B5.5.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.5For the purpose of determining significant increases in credit risk and recognising a loss allowance on a collective basis, an entity can group financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis. The entity should not obscure this information by grouping financial instruments with different risk characteristics. Examples of shared credit risk characteristics may include, but are not limited to, the:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Timing of recognising lifetime expected credit losses
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B5.5.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.12An entity may apply various approaches when assessing whether the credit risk on a financial instrument has increased significantly since initial recognition or when measuring expected credit losses. An entity may apply different approaches for different financial instruments. An approach that does not include an explicit probability of default as an input per se, such as a credit loss rate approach, can be consistent with the requirements in this Standard, provided that an entity is able to separate the changes in the risk of a default occurring from changes in other drivers of expected credit losses, such as collateral, and considers the following when making the assessment:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.14However, for some financial instruments, or in some circumstances, it may not be appropriate to use changes in the risk of a default occurring over the next 12 months to determine whether lifetime expected credit losses should be recognised. For example, the change in the risk of a default occurring in the next 12 months may not be a suitable basis for determining whether credit risk has increased on a financial instrument with a maturity of more than 12 months when:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Determining whether credit risk has increased significantly since initial recognition
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B5.5.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.17The following non-exhaustive list of information may be relevant in assessing changes in credit risk:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
More than 30 days past due rebuttable presumption
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B5.5.19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Financial instruments that have low credit risk at the reporting date
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B5.5.22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Modifications
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B5.5.25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Measurement of expected credit losses
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Expected credit losses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.29For financial assets, a credit loss is the present value of the difference between:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.30For undrawn loan commitments, a credit loss is the present value of the difference between:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Definition of default
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B5.5.36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Period over which to estimate expected credit losses
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B5.5.38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.39However, in accordance with paragraph 5.5.20, some financial instruments include both a loan and an undrawn commitment component and the entity's contractual ability to demand repayment and cancel the undrawn commitment does not limit the entity's exposure to credit losses to the contractual notice period. For example, revolving credit facilities, such as credit cards and overdraft facilities, can be contractually withdrawn by the lender with as little as one day's notice. However, in practice lenders continue to extend credit for a longer period and may only withdraw the facility after the credit risk of the borrower increases, which could be too late to prevent some or all of the expected credit losses. These financial instruments generally have the following characteristics as a result of the nature of the financial instrument, the way in which the financial instruments are managed, and the nature of the available information about significant increases in credit risk:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.40When determining the period over which the entity is expected to be exposed to credit risk, but for which expected credit losses would not be mitigated by the entity's normal credit risk management actions, an entity should consider factors such as historical information and experience about:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Probability-weighted outcome
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B5.5.41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Time value of money
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B5.5.44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Reasonable and supportable information
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B5.5.49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5.54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Collateral
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B5.5.55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Reclassification of financial assets (Section 5.6)
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B5.6.1If an entity reclassifies financial assets in accordance with paragraph 4.4.1, paragraph 5.6.1 requires that the reclassification is applied prospectively from the reclassification date. Both the amortised cost measurement category and the fair value through other comprehensive income measurement category require that the effective interest rate is determined at initial recognition. Both of those measurement categories also require that the impairment requirements are applied in the same way. Consequently, when an entity reclassifies a financial asset between the amortised cost measurement category and the fair value through other comprehensive income measurement category:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.6.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Gains and losses (Section 5.7)
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B5.7.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.1 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.2 A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Liabilities designated as at fair value through profit or loss
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B5.7.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
The meaning of ‘credit risk’ (paragraphs 5.7.7 and 5.7.8)
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B5.7.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.15The following are examples of asset-specific performance risk:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Determining the effects of changes in credit risk
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B5.7.16For the purposes of applying the requirement in paragraph 5.7.7(a), an entity shall determine the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability either:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.18If the only significant relevant changes in market conditions for a liability are changes in an observed (benchmark) interest rate, the amount in paragraph B5.7.16(a) can be estimated as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>HEDGE ACCOUNTING (CHAPTER 6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedging instruments (Section 6.2)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Qualifying instruments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.2.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.2.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.2.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Written options
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B6.2.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Designation of hedging instruments
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B6.2.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.2.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedged items (Section 6.3)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Qualifying items
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.3Paragraph 6.3.4 permits an entity to designate as hedged items aggregated exposures that are a combination of an exposure and a derivative. When designating such a hedged item, an entity assesses whether the aggregated exposure combines an exposure with a derivative so that it creates a different aggregated exposure that is managed as one exposure for a particular risk (or risks). In that case, the entity may designate the hedged item on the basis of the aggregated exposure. For example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.4When designating the hedged item on the basis of the aggregated exposure, an entity considers the combined effect of the items that constitute the aggregated exposure for the purpose of assessing hedge effectiveness and measuring hedge ineffectiveness. However, the items that constitute the aggregated exposure remain accounted for separately. This means that, for example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Designation of hedged items
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Risk components
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.10When designating risk components as hedged items, an entity considers whether the risk components are explicitly specified in a contract (contractually specified risk components) or whether they are implicit in the fair value or the cash flows of an item of which they are a part (non-contractually specified risk components). Non-contractually specified risk components can relate to items that are not a contract (for example, forecast transactions) or contracts that do not explicitly specify the component (for example, a firm commitment that includes only one single price instead of a pricing formula that references different underlyings). For example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Components of a nominal amount
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.18A layer component may be specified from a defined, but open, population, or from a defined nominal amount. Examples include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Relationship between components and the total cash flows of an item
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.22For example, in the case of a financial liability whose effective interest rate is below LIBOR, an entity cannot designate:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.3.25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Qualifying criteria for hedge accounting (Section 6.4)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedge effectiveness
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Economic relationship between the hedged item and the hedging instrument
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
The effect of credit risk
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B6.4.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedge ratio
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.11Examples of relevant considerations in assessing whether an accounting outcome is inconsistent with the purpose of hedge accounting are:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Frequency of assessing whether the hedge effectiveness requirements are met
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Methods for assessing whether the hedge effectiveness requirements are met
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B6.4.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.4.19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Accounting for qualifying hedging relationships (Section 6.5)
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B6.5.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Measurement of hedge ineffectiveness
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B6.5.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Rebalancing the hedging relationship and changes to the hedge ratio
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B6.5.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.11Not every change in the extent of offset between the changes in the fair value of the hedging instrument and the hedged item's fair value or cash flows constitutes a change in the relationship between the hedging instrument and the hedged item. An entity analyses the sources of hedge ineffectiveness that it expected to affect the hedging relationship during its term and evaluates whether changes in the extent of offset are:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.14Rebalancing means that, for hedge accounting purposes, after the start of a hedging relationship an entity adjusts the quantities of the hedging instrument or the hedged item in response to changes in circumstances that affect the hedge ratio of that hedging relationship. Typically, that adjustment should reflect adjustments in the quantities of the hedging instrument and the hedged item that it actually uses. However, an entity must adjust the hedge ratio that results from the quantities of the hedged item or the hedging instrument that it actually uses if:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.16If a hedging relationship is rebalanced, the adjustment to the hedge ratio can be effected in different ways:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Discontinuation of hedge accounting
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B6.5.22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.23An entity shall not de-designate and thereby discontinue a hedging relationship that:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.24For the purposes of this Standard, an entity's risk management strategy is distinguished from its risk management objectives. The risk management strategy is established at the highest level at which an entity determines how it manages its risk. Risk management strategies typically identify the risks to which the entity is exposed and set out how the entity responds to them. A risk management strategy is typically in place for a longer period and may include some flexibility to react to changes in circumstances that occur while that strategy is in place (for example, different interest rate or commodity price levels that result in a different extent of hedging). This is normally set out in a general document that is cascaded down through an entity through policies containing more specific guidelines. In contrast, the risk management objective for a hedging relationship applies at the level of a particular hedging relationship. It relates to how the particular hedging instrument that has been designated is used to hedge the particular exposure that has been designated as the hedged item. Hence, a risk management strategy can involve many different hedging relationships whose risk management objectives relate to executing that overall risk management strategy. For example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.25The discontinuation of hedge accounting can affect:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.26A hedging relationship is discontinued in its entirety when, as a whole, it ceases to meet the qualifying criteria. For example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.27A part of a hedging relationship is discontinued (and hedge accounting continues for its remainder) when only a part of the hedging relationship ceases to meet the qualifying criteria. For example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.28An entity can designate a new hedging relationship that involves the hedging instrument or hedged item of a previous hedging relationship for which hedge accounting was (in part or in its entirety) discontinued. This does not constitute a continuation of a hedging relationship but is a restart. For example:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Accounting for the time value of options
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B6.5.29An option can be considered as being related to a time period because its time value represents a charge for providing protection for the option holder over a period of time. However, the relevant aspect for the purpose of assessing whether an option hedges a transaction or time-period related hedged item are the characteristics of that hedged item, including how and when it affects profit or loss. Hence, an entity shall assess the type of hedged item (see paragraph 6.5.15(a)) on the basis of the nature of the hedged item (regardless of whether the hedging relationship is a cash flow hedge or a fair value hedge):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.30The characteristics of the hedged item, including how and when the hedged item affects profit or loss, also affect the period over which the time value of an option that hedges a time-period related hedged item is amortised, which is consistent with the period over which the option's intrinsic value can affect profit or loss in accordance with hedge accounting. For example, if an interest rate option (a cap) is used to provide protection against increases in the interest expense on a floating rate bond, the time value of that cap is amortised to profit or loss over the same period over which any intrinsic value of the cap would affect profit or loss:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.31The accounting for the time value of options in accordance with paragraph 6.5.15 also applies to a combination of a purchased and a written option (one being a put option and one being a call option) that at the date of designation as a hedging instrument has a net nil time value (commonly referred to as a ‘zero-cost collar’). In that case, an entity shall recognise any changes in time value in other comprehensive income, even though the cumulative change in time value over the total period of the hedging relationship is nil. Hence, if the time value of the option relates to:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.33If the actual time value and the aligned time value differ, an entity shall determine the amount that is accumulated in a separate component of equity in accordance with paragraph 6.5.15 as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Accounting for the forward element of forward contracts and foreign currency basis spreads of financial instruments
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B6.5.34A forward contract can be considered as being related to a time period because its forward element represents charges for a period of time (which is the tenor for which it is determined). However, the relevant aspect for the purpose of assessing whether a hedging instrument hedges a transaction or time-period related hedged item are the characteristics of that hedged item, including how and when it affects profit or loss. Hence, an entity shall assess the type of hedged item (see paragraphs 6.5.16 and 6.5.15(a)) on the basis of the nature of the hedged item (regardless of whether the hedging relationship is a cash flow hedge or a fair value hedge):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.36The accounting for the forward element of a forward contract in accordance with paragraph 6.5.16 also applies if, at the date on which the forward contract is designated as a hedging instrument, the forward element is nil. In that case, an entity shall recognise any fair value changes attributable to the forward element in other comprehensive income, even though the cumulative fair value change attributable to the forward element over the total period of the hedging relationship is nil. Hence, if the forward element of a forward contract relates to:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.38If the actual forward element and the aligned forward element differ, an entity shall determine the amount that is accumulated in a separate component of equity in accordance with paragraph 6.5.16 as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.5.39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedge of a group of items (Section 6.6)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedge of a net position
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Eligibility for hedge accounting and designation of a net position
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B6.6.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Application of the hedge effectiveness requirements to a hedge of a net position
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B6.6.5When an entity determines whether the hedge effectiveness requirements of paragraph 6.4.1(c) are met when it hedges a net position, it shall consider the changes in the value of the items in the net position that have a similar effect as the hedging instrument in conjunction with the fair value change on the hedging instrument. For example, an entity has a group of firm sale commitments in nine months' time for FC100 and a group of firm purchase commitments in 18 months' time for FC120. It hedges the foreign currency risk of the net position of FC20 using a forward exchange contract for FC20. When determining whether the hedge effectiveness requirements of paragraph 6.4.1(c) are met, the entity shall consider the relationship between:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Cash flow hedges that constitute a net position
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B6.6.7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.8For example, an entity has a net position that consists of a bottom layer of FC100 of sales and a bottom layer of FC150 of purchases. Both sales and purchases are denominated in the same foreign currency. In order to sufficiently specify the designation of the hedged net position, the entity specifies in the original documentation of the hedging relationship that sales can be of Product A or Product B and purchases can be of Machinery Type A, Machinery Type B and Raw Material A. The entity also specifies the volumes of the transactions by each nature. The entity documents that the bottom layer of sales (FC100) is made up of a forecast sales volume of the first FC70 of Product A and the first FC30 of Product B. If those sales volumes are expected to affect profit or loss in different reporting periods, the entity would include that in the documentation, for example, the first FC70 from sales of Product A that are expected to affect profit or loss in the first reporting period and the first FC30 from sales of Product B that are expected to affect profit or loss in the second reporting period. The entity also documents that the bottom layer of the purchases (FC150) is made up of purchases of the first FC60 of Machinery Type A, the first FC40 of Machinery Type B and the first FC50 of Raw Material A. If those purchase volumes are expected to affect profit or loss in different reporting periods, the entity would include in the documentation a disaggregation of the purchase volumes by the reporting periods in which they are expected to affect profit or loss (similarly to how it documents the sales volumes). For example, the forecast transaction would be specified as:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.9For a cash flow hedge of a net position, the amounts determined in accordance with paragraph 6.5.11 shall include the changes in the value of the items in the net position that have a similar effect as the hedging instrument in conjunction with the fair value change on the hedging instrument. However, the changes in the value of the items in the net position that have a similar effect as the hedging instrument are recognised only once the transactions that they relate to are recognised, such as when a forecast sale is recognised as revenue. For example, an entity has a group of highly probable forecast sales in nine months' time for FC100 and a group of highly probable forecast purchases in 18 months' time for FC120. It hedges the foreign currency risk of the net position of FC20 using a forward exchange contract for FC20. When determining the amounts that are recognised in the cash flow hedge reserve in accordance with paragraph 6.5.11(a)–6.5.11(b), the entity compares:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Layers of groups of items designated as the hedged item
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B6.6.11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Presentation of hedging instrument gains or losses
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B6.6.13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6.6.16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>EFFECTIVE DATE AND TRANSITION (CHAPTER 7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Transition (Section 7.2)
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<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Financial assets held for trading
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B7.2.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Impairment
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B7.2.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B7.2.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B7.2.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>DEFINITIONS (APPENDIX A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Derivatives
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BA.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Financial assets and liabilities held for trading
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.7Financial liabilities held for trading include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BA.8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix C
<Strong>Amendments to other Standards</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 1
<Strong>
<Emphasis>First-time Adoption of International Financial Reporting Standards</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1Paragraph 29 is amended to read as follows, paragraphs 39B, 39G and 39U are deleted and paragraphs 29A and 39Y are added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C2In Appendix B, paragraphs B1–B6 are amended to read as follows, and a heading and paragraphs B8–B8G, and a heading and paragraph B9 are added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Derecognition of financial assets and financial liabilities
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedge accounting
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B4As required by IFRS 9, at the date of transition to IFRSs an entity shall:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Classification and measurement of financial instruments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Impairment of financial assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8FWhen determining whether there has been a significant increase in credit risk since initial recognition, an entity may apply:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Embedded derivatives
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C3In Appendix D, paragraphs D1, D14, D15, D19 and D20 and a heading above D19 are amended to read as follows and paragraphs D19A–D19C and, after paragraph D32, a heading and paragraph D33 are added.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Designation of previously recognised financial instruments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D19A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D19B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D19C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Fair value measurement of financial assets or financial liabilities at initial recognition
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Designation of contracts to buy or sell a non-financial item
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C4In Appendix E, a heading and paragraphs E1 and E2 are added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Exemption from the requirement to restate comparative information for IFRS 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E2An entity that chooses to present comparative information that does not comply with IFRS 7 and the completed version of IFRS 9 (issued in 2014) in its first year of transition shall:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 2
<Strong>
<Emphasis>Share-based Payment</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C5Paragraph 6 is amended to read as follows, and paragraph 63C is added.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 3
<Strong>
<Emphasis>Business Combinations</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C6Paragraphs 16, 42, 53, 56 and 58 are amended to read as follows, paragraphs 64A, 64D and 64H are deleted and paragraph 64L is added.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C7In Appendix B, paragraph B41 is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 4
<Strong>
<Emphasis>Insurance Contracts</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C9Paragraphs 3, 4, 7, 8, 12, 34, 35 and 45 are amended to read as follows, paragraphs 41C, 41D and 41F are deleted and paragraph 41H is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Discretionary participation features in financial instruments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35.The requirements in paragraph 34 also apply to a financial instrument that contains a discretionary participation feature. In addition:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41H. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C10In Appendix A the defined term ‘deposit component’ is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C11In Appendix B, paragraphs B18–B20 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 5
<Strong>
<Emphasis>Non-current Assets Held for Sale and Discontinued Operations</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C12Paragraph 5 is amended to read as follows, paragraphs 44F and 44J are deleted and paragraph 44K is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 7
<Strong>
<Emphasis>Financial Instruments: Disclosures</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C13Paragraphs 2–5, 8–11, 14, 20, 28–30, 36 and 42C–42E are amended to read as follows, paragraphs 12, 12A, 16, 22–24, 37, 44E, 44F and 44H–44J, 44N, 44S–44W, 44Y are deleted and several headings and paragraphs 5A, 10A, 11A, 11B, 12B–12D, 16A, 20A, 21A–21D, 22A–22C, 23A–23F, 24A–24G, 35A–35N, 42I–42S, 44Z and 44ZA are added.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>SCOPE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.This IFRS shall be applied by all entities to all types of financial instruments, except:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.The carrying amounts of each of the following categories, as specified in IFRS 9, shall be disclosed either in the statement of financial position or in the notes:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Financial assets or financial liabilities at fair value through profit or loss
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.If the entity has designated as measured at fair value through profit or loss a financial asset (or group of financial assets) that would otherwise be measured at fair value through other comprehensive income or amortised cost, it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.If the entity has designated a financial liability as at fair value through profit or loss in accordance with paragraph 4.2.2 of IFRS 9 and is required to present the effects of changes in that liability's credit risk in other comprehensive income (see paragraph 5.7.7 of IFRS 9), it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10AIf an entity has designated a financial liability as at fair value through profit or loss in accordance with paragraph 4.2.2 of IFRS 9 and is required to present all changes in the fair value of that liability (including the effects of changes in the credit risk of the liability) in profit or loss (see paragraphs 5.7.7 and 5.7.8 of IFRS 9), it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11.The entity shall also disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Investments in equity instruments designated at fair value through other comprehensive income
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11AIf an entity has designated investments in equity instruments to be measured at fair value through other comprehensive income, as permitted by paragraph 5.7.5 of IFRS 9, it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11BIf an entity derecognised investments in equity instruments measured at fair value through other comprehensive income during the reporting period, it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12–12A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12BAn entity shall disclose if, in the current or previous reporting periods, it has reclassified any financial assets in accordance with paragraph 4.4.1 of IFRS 9. For each such event, an entity shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12CFor each reporting period following reclassification until derecognition, an entity shall disclose for assets reclassified out of the fair value through profit or loss category so that they are measured at amortised cost or fair value through other comprehensive income in accordance with paragraph 4.4.1 of IFRS 9:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12DIf, since its last annual reporting date, an entity has reclassified financial assets out of the fair value through other comprehensive income category so that they are measured at amortised cost or out of the fair value through profit or loss category so that they are measured at amortised cost or fair value through other comprehensive income it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.An entity shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20.An entity shall disclose the following items of income, expense, gains or losses either in the statement of comprehensive income or in the notes:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Hedge accounting
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21AAn entity shall apply the disclosure requirements in paragraphs 21B–24F for those risk exposures that an entity hedges and for which it elects to apply hedge accounting. Hedge accounting disclosures shall provide information about:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
The risk management strategy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22AAn entity shall explain its risk management strategy for each risk category of risk exposures that it decides to hedge and for which hedge accounting is applied. This explanation should enable users of financial statements to evaluate (for example):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22BTo meet the requirements in paragraph 22A, the information should include (but is not limited to) a description of:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22CWhen an entity designates a specific risk component as a hedged item (see paragraph 6.3.7 of IFRS 9) it shall provide, in addition to the disclosures required by paragraphs 22A and 22B, qualitative or quantitative information about:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
The amount, timing and uncertainty of future cash flows
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23BTo meet the requirement in paragraph 23A, an entity shall provide a breakdown that discloses:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23CIn situations in which an entity frequently resets (ie discontinues and restarts) hedging relationships because both the hedging instrument and the hedged item frequently change (ie the entity uses a dynamic process in which both the exposure and the hedging instruments used to manage that exposure do not remain the same for long—such as in the example in paragraph B6.5.24(b) of IFRS 9) the entity:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
The effects of hedge accounting on financial position and performance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24AAn entity shall disclose, in a tabular format, the following amounts related to items designated as hedging instruments separately by risk category for each type of hedge (fair value hedge, cash flow hedge or hedge of a net investment in a foreign operation):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24BAn entity shall disclose, in a tabular format, the following amounts related to hedged items separately by risk category for the types of hedges as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24CAn entity shall disclose, in a tabular format, the following amounts separately by risk category for the types of hedges as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24EAn entity shall provide a reconciliation of each component of equity and an analysis of other comprehensive income in accordance with IAS 1 that, taken together:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Option to designate a credit exposure as measured at fair value through profit or loss
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24GIf an entity designated a financial instrument, or a proportion of it, as measured at fair value through profit or loss because it uses a credit derivative to manage the credit risk of that financial instrument it shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28.In some cases, an entity does not recognise a gain or loss on initial recognition of a financial asset or financial liability because the fair value is neither evidenced by a quoted price in an active market for an identical asset or liability (ie a Level 1 input) nor based on a valuation technique that uses only data from observable markets (see paragraph B5.1.2 A of IFRS 9). In such cases, the entity shall disclose by class of financial asset or financial liability:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29.Disclosures of fair value are not required:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30.In the case described in paragraph 29(c), an entity shall disclose information to help users of the financial statements make their own judgements about the extent of possible differences between the carrying amount of those contracts and their fair value, including:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Credit risk
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Scope and objectives
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35AAn entity shall apply the disclosure requirements in paragraphs 35F–35N to financial instruments to which the impairment requirements in IFRS 9 are applied. However:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35BThe credit risk disclosures made in accordance with paragraphs 35F–35N shall enable users of financial statements to understand the effect of credit risk on the amount, timing and uncertainty of future cash flows. To achieve this objective, credit risk disclosures shall provide:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
The credit risk management practices
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35FAn entity shall explain its credit risk management practices and how they relate to the recognition and measurement of expected credit losses. To meet this objective an entity shall disclose information that enables users of financial statements to understand and evaluate:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35GAn entity shall explain the inputs, assumptions and estimation techniques used to apply the requirements in Section 5.5 of IFRS 9. For this purpose an entity shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Quantitative and qualitative information about amounts arising from expected credit losses
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35HTo explain the changes in the loss allowance and the reasons for those changes, an entity shall provide, by class of financial instrument, a reconciliation from the opening balance to the closing balance of the loss allowance, in a table, showing separately the changes during the period for:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35ITo enable users of financial statements to understand the changes in the loss allowance disclosed in accordance with paragraph 35H, an entity shall provide an explanation of how significant changes in the gross carrying amount of financial instruments during the period contributed to changes in the loss allowance. The information shall be provided separately for financial instruments that represent the loss allowance as listed in paragraph 35H(a)–(c) and shall include relevant qualitative and quantitative information. Examples of changes in the gross carrying amount of financial instruments that contributed to the changes in the loss allowance may include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35JTo enable users of financial statements to understand the nature and effect of modifications of contractual cash flows on financial assets that have not resulted in derecognition and the effect of such modifications on the measurement of expected credit losses, an entity shall disclose:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35KTo enable users of financial statements to understand the effect of collateral and other credit enhancements on the amounts arising from expected credit losses, an entity shall disclose by class of financial instrument:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35L. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Credit risk exposure
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35MTo enable users of financial statements to assess an entity's credit risk exposure and understand its significant credit risk concentrations, an entity shall disclose, by <Emphasis>credit risk rating grades</Emphasis>, the gross carrying amount of financial assets and the exposure to credit risk on loan commitments and financial guarantee contracts. This information shall be provided separately for financial instruments:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35N. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36.For all financial instruments within the scope of this IFRS, but to which the impairment requirements in IFRS 9 are not applied, an entity shall disclose by class of financial instrument:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42CFor the purposes of applying the disclosure requirements in paragraphs 42E–42H, an entity has continuing involvement in a transferred financial asset if, as part of the transfer, the entity retains any of the contractual rights or obligations inherent in the transferred financial asset or obtains any new contractual rights or obligations relating to the transferred financial asset. For the purposes of applying the disclosure requirements in paragraphs 42E–42H, the following do not constitute continuing involvement:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Transferred financial assets that are not derecognised in their entirety
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42DAn entity may have transferred financial assets in such a way that part or all of the transferred financial assets do not qualify for derecognition. To meet the objectives set out in paragraph 42B(a), the entity shall disclose at each reporting date for each class of transferred financial assets that are not derecognised in their entirety:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Transferred financial assets that are derecognised in their entirety
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42ETo meet the objectives set out in paragraph 42B(b), when an entity derecognises transferred financial assets in their entirety (see paragraph 3.2.6(a) and (c)(i) of IFRS 9) but has continuing involvement in them, the entity shall disclose, as a minimum, for each type of continuing involvement at each reporting date:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>INITIAL APPLICATION OF IFRS 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42IIn the reporting period that includes the date of initial application of IFRS 9, the entity shall disclose the following information for each class of financial assets and financial liabilities as at the date of initial application:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42JIn the reporting period that includes the date of initial application of IFRS 9, an entity shall disclose qualitative information to enable users to understand:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42LWhen required by paragraph 42K, an entity shall disclose the changes in the classifications of financial assets and financial liabilities as at the date of initial application of IFRS 9, showing separately:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42MWhen required by paragraph 42K, an entity shall disclose the following for financial assets and financial liabilities that have been reclassified so that they are measured at amortised cost and, in the case of financial assets, that have been reclassified out of fair value through profit or loss so that they are measured at fair value through other comprehensive income, as a result of the transition to IFRS 9:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42NWhen required by paragraph 42K, an entity shall disclose the following for financial assets and financial liabilities that have been reclassified out of the fair value through profit or loss category as a result of the transition to IFRS 9:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42OWhen an entity presents the disclosures set out in paragraphs 42K–42N, those disclosures, and the disclosures in paragraph 25 of this IFRS, must permit reconciliation between:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42QIn the reporting period that includes the date of initial application of IFRS 9, an entity is not required to disclose the line item amounts that would have been reported in accordance with the classification and measurement requirements (which includes the requirements related to amortised cost measurement of financial assets and impairment in Sections 5.4 and 5.5 of IFRS 9) of:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42R. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>EFFECTIVE DATE AND TRANSITION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44H–44J. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44N. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44S–44W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44Y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44Z. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44ZA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C14In Appendix A, the definition of ‘credit risk rating grades’ is added, the definition of ‘past due’ is deleted and the last paragraph is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C15In Appendix B, paragraphs B1, B5, B9, B10, B22 and B27 are amended to read as follows, the heading above paragraph B4 and paragraph B4 are deleted and the heading above paragraph B8A and paragraphs B8A–B8J are added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Credit risk management practices (paragraphs 35F–35G)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8AParagraph 35F(b) requires the disclosure of information about how an entity has defined default for different financial instruments and the reasons for selecting those definitions. In accordance with paragraph 5.5.9 of IFRS 9, the determination of whether lifetime expected credit losses should be recognised is based on the increase in the risk of a default occurring since initial recognition. Information about an entity's definitions of default that will assist users of financial statements in understanding how an entity has applied the expected credit loss requirements in IFRS 9 may include:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Changes in the loss allowance (paragraph 35H)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8DIn accordance with paragraph 35H, an entity is required to explain the reasons for the changes in the loss allowance during the period. In addition to the reconciliation from the opening balance to the closing balance of the loss allowance, it may be necessary to provide a narrative explanation of the changes. This narrative explanation may include an analysis of the reasons for changes in the loss allowance during the period, including:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Collateral (paragraph 35K)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8GA narrative description of collateral and its effect on amounts of expected credit losses might include information about:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Credit risk exposure (paragraphs 35M–35N)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8H. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8J. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B9Paragraphs 35K(a) and 36(a) require disclosure of the amount that best represents the entity's maximum exposure to credit risk. For a financial asset, this is typically the gross carrying amount, net of:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B10Activities that give rise to credit risk and the associated maximum exposure to credit risk include, but are not limited to:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 9
<Strong>
<Emphasis>Financial Instruments (issued November 2009)</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C17Paragraph 8.1.1 is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 9
<Strong>
<Emphasis>Financial Instruments (issued October 2010)</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C18Paragraphs 7.1.1 and 7.3.2 are amended to read as follows, and paragraph 7.1.1 A is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 9
<Strong>
<Emphasis>Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39)</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C19Paragraphs 7.1.1, 7.1.2 and 7.3.2 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRS 13
<Strong>
<Emphasis>Fair Value Measurement</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C20Paragraph 52 is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C21In Appendix C, paragraph C5 is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 1
<Strong>
<Emphasis>Presentation of Financial Statements</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C22In paragraph 7, the definition of ‘other comprehensive income’ and paragraphs 68, 71, 82, 93, 95, 96, 106 and 123 are amended to read as follows, paragraphs 139E, 139G and 139M are deleted and paragraph 139O is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 2
<Strong>
<Emphasis>Inventories</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C23Paragraph 2 is amended to read as follows, paragraphs 40A, 40B and 40D are deleted and paragraph 40F is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 8
<Strong>
<Emphasis>Accounting Policies, Changes in Accounting Estimates and Errors</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C24Paragraph 53 is amended to read as follows, paragraphs 54A, 54B and 54D are deleted and paragraph 54E is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 10
<Strong>
<Emphasis>Events after the Reporting Period</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C25Paragraph 9 is amended to read as follows and paragraph 23B is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 12
<Strong>
<Emphasis>Income Taxes</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C26Paragraph 20 is amended to read as follows, paragraphs 96, 97 and 98D are deleted and paragraph 98F is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 20
<Strong>
<Emphasis>Accounting for Government Grants and Disclosure of Government Assistance</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C27Paragraph 10A is amended to read as follows, paragraphs 44 and 47 are deleted and paragraph 48 is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 21
<Strong>
<Emphasis>The Effects of Changes in Foreign Exchange Rates</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C29Paragraphs 3, 4, 5, 27 and 52 are amended to read as follows, paragraphs 60C, 60E and 60I are deleted and paragraph 60J is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 23
<Strong>
<Emphasis>Borrowing Costs</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C30Paragraph 6 is amended to read as follows and paragraph 29B is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 28
<Strong>
<Emphasis>Investments in Associates and Joint Ventures</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C31Paragraphs 40–42 are amended to read as follows, and paragraphs 41A–41C and 45A are added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 32
<Strong>
<Emphasis>Financial Instruments: Presentation</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C33Paragraphs 3, 4, 8, 12, 23, 31, 42 and 96C are amended to read as follows, paragraphs 97F, 97H and 97P are deleted and paragraph 97R is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>SCOPE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
<Strong>This Standard shall be applied by all entities to all types of financial instruments except:</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.The following terms are defined in Appendix A of IFRS 9 or paragraph 9 of IAS 39 <Emphasis>Financial Instruments: Recognition and Measurement</Emphasis> and are used in this Standard with the meaning specified in IAS 39 and IFRS 9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42.
<Strong>A financial asset and a financial liability shall be offset and the net amount presented in the statement of financial position when, and only when, an entity:</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
96C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97F. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97H. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97R. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C34In the Appendix, paragraphs AG2 and AG30 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 33
<Strong>
<Emphasis>Earnings per Share</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C35Paragraph 34 is amended to read as follows and paragraph 74E is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 36
<Strong>
<Emphasis>Impairment of Assets</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C36Paragraphs 2, 4 and 5 are amended to read as follows, paragraphs 140F, 140G and 140K are deleted and paragraph 140M is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 37
<Strong>
<Emphasis>Provisions, Contingent Liabilities and Contingent Assets</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C37Paragraph 2 is amended to read as follows, paragraphs 97 and 98 are deleted and paragraph 101 is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IAS 39
<Strong>
<Emphasis>Financial Instruments: Recognition and Measurement</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C40Paragraph 2 is amended to read as follows and paragraphs 4–7 are deleted:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C41Paragraphs 8 and 9 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C43Paragraphs 71, 88–90 and 96 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>
Fair value hedges
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89.
<Strong>If a fair value hedge meets the conditions in paragraph 88 during the period, it shall be accounted for as follows:</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
96.More specifically, a cash flow hedge is accounted for as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C44Paragraphs 103C, 103D, 103F, 103K, 104 and 108C are amended to read as follows, paragraphs 103B, 103H–103J, 103L–103P, 103S, 105–107A and 108E–108F are deleted and paragraph 103U is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C46In Appendix A, paragraphs AG95, AG114 and AG118 are amended to read as follows and the first footnote to paragraph AG118(b) is deleted:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C47In Appendix A, the heading above paragraph AG133 is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRIC 2
<Strong>
<Emphasis>Members' Shares in Cooperative Entities and Similar Instruments</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C48Below the heading ‘References’, the reference to IAS 39 is deleted and a reference to IFRS 9 <Emphasis>Financial Instruments</Emphasis> is added. Paragraphs 15 and 18 are deleted and paragraph 19 is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C49In the Appendix, paragraphs A8 and A10 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRIC 5
<Strong>
<Emphasis>Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C50Below the heading ‘References’, the reference to IAS 39 is deleted and a reference to IFRS 9 <Emphasis>Financial Instruments</Emphasis> is added. Paragraph 5 is amended to read as follows, paragraphs 14A and 14C are deleted and paragraph 14D is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRIC 10
<Strong>
<Emphasis>Interim Financial Reporting and Impairment</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C51Below the heading ‘References’, the reference to IAS 39 is deleted and a reference to IFRS 9 <Emphasis>Financial Instruments</Emphasis> is added. Paragraphs 1, 2, 7 and 8 are amended to read as follows, paragraphs 5, 6, 11–13 are deleted, and paragraph 14 is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>CONSENSUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11–13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRIC 12
<Strong>
<Emphasis>Service Concession Arrangements</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C52Below the heading ‘References’, the reference to IAS 39 is deleted and a reference to IFRS 9 <Emphasis>Financial Instruments</Emphasis> is added. Paragraphs 23–25 are amended to read as follows, paragraphs 28A–28C are deleted and paragraph 28E is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRIC 16
<Strong>
<Emphasis>Hedges of a Net Investment in a Foreign Operation</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C54Paragraphs 3, 5–7, 14 and 16 are amended to read as follows, paragraph 18A is deleted and paragraph 18B is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C55In the Appendix, paragraphs AG1 and AG8 are amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IFRIC 19
<Strong>
<Emphasis>Extinguishing Financial Liabilities with Equity Instruments</Emphasis>
</Strong>
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C56Below the heading ‘References’, the reference to IAS 39 is deleted and a reference to IFRS 9 <Emphasis>Financial Instruments</Emphasis> is added. Paragraphs 4, 5, 7, 9 and 10 are amended to read as follows, paragraphs 14 and 16 are deleted and paragraph 17 is added:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>CONSENSUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SIC INTERPRETATION 27
<Strong>
<Emphasis>Evaluating the Substance of Transactions Involving the Legal Form of a Lease</Emphasis>
</Strong>
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C57Below the heading ‘References’, the reference to IAS 39 is deleted and a reference to IFRS 9 <Emphasis>Financial Instruments</Emphasis> is added. Paragraph 7 and the section below ‘Effective date’ is amended to read as follows:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<CommentaryRef Ref="key-a6b8dbbf83620304f1e07702f280cefb"/>EFFECTIVE DATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .