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Commission Regulation (EU) 2016/2067Show full title

Commission Regulation (EU) 2016/2067 of 22 November 2016 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standard 9 (Text with EEA relevance) (revoked)

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  1. Introductory Text

  2. Article 1.(1) The Annex to Regulation (EC) No 1126/2008 is amended...

  3. Article 2.Each company shall apply the amendments referred to in Article...

  4. Article 3.This Regulation shall enter into force on the twentieth day...

  5. Signature

    1. ANNEX

      1. IFRS 9 Financial Instruments

        1. International Financial Reporting Standard 9 Financial Instruments

          1. CHAPTER 1 Objective

            1. 1.1. The objective of this Standard is to establish principles for...

          2. CHAPTER 2 Scope

            1. 2.1. This Standard shall be applied by all entities to all...

            2. 2.2. The impairment requirements of this Standard shall be applied to...

            3. 2.3. The following loan commitments are within the scope of this...

            4. 2.4. This Standard shall be applied to those contracts to buy...

            5. 2.5. A contract to buy or sell a non-financial item that...

            6. 2.6. There are various ways in which a contract to buy...

            7. 2.7. A written option to buy or sell a non-financial item...

          3. CHAPTER 3 Recognition and derecognition

            1. 3.1 INITIAL RECOGNITION

              1. 3.1.1. An entity shall recognise a financial asset or a financial...

              2. Regular way purchase or sale of financial assets

                1. 3.1.2. A regular way purchase or sale of financial assets shall...

            2. 3.2 DERECOGNITION OF FINANCIAL ASSETS

              1. 3.2.1. In consolidated financial statements, paragraphs 3.2.2–3.2.9, B3.1.1, B3.1.2 and B3.2.1–B3.2.17...

              2. 3.2.2. Before evaluating whether, and to what extent, derecognition is appropriate...

              3. 3.2.3. An entity shall derecognise a financial asset when, and only...

              4. 3.2.4. An entity transfers a financial asset if, and only if,...

              5. 3.2.5. When an entity retains the contractual rights to receive the...

              6. 3.2.6. When an entity transfers a financial asset (see paragraph 3.2.4),...

              7. 3.2.7. The transfer of risks and rewards (see paragraph 3.2.6) is...

              8. 3.2.8. Often it will be obvious whether the entity has transferred...

              9. 3.2.9. Whether the entity has retained control (see paragraph 3.2.6(c)) of...

              10. Transfers that qualify for derecognition

                1. 3.2.10. If an entity transfers a financial asset in a transfer...

                2. 3.2.11. If, as a result of a transfer, a financial asset...

                3. 3.2.12. On derecognition of a financial asset in its entirety, the...

                4. 3.2.13. If the transferred asset is part of a larger financial...

                5. 3.2.14. When an entity allocates the previous carrying amount of a...

              11. Transfers that do not qualify for derecognition

                1. 3.2.15. If a transfer does not result in derecognition because the...

              12. Continuing involvement in transferred assets

                1. 3.2.16. If an entity neither transfers nor retains substantially all the...

                2. 3.2.17. When an entity continues to recognise an asset to the...

                3. 3.2.18. The entity shall continue to recognise any income arising on...

                4. 3.2.19. For the purpose of subsequent measurement, recognised changes in the...

                5. 3.2.20. If an entity's continuing involvement is in only a part...

                6. 3.2.21. If the transferred asset is measured at amortised cost, the...

              13. All transfers

                1. 3.2.22. If a transferred asset continues to be recognised, the asset...

                2. 3.2.23. If a transferor provides non-cash collateral (such as debt or...

            3. 3.3 DERECOGNITION OF FINANCIAL LIABILITIES

              1. 3.3.1. An entity shall remove a financial liability (or a part...

              2. 3.3.2. An exchange between an existing borrower and lender of debt...

              3. 3.3.3. The difference between the carrying amount of a financial liability...

              4. 3.3.4. If an entity repurchases a part of a financial liability,...

          4. CHAPTER 4 Classification

            1. 4.1 CLASSIFICATION OF FINANCIAL ASSETS

              1. 4.1.1. Unless paragraph 4.1.5 applies, an entity shall classify financial assets...

              2. 4.1.2. A financial asset shall be measured at amortised cost if...

              3. 4.1.2 A A financial asset shall be measured at fair value through...

              4. 4.1.3. For the purpose of applying paragraphs 4.1.2(b) and 4.1.2 A(b):

              5. 4.1.4. A financial asset shall be measured at fair value through...

              6. Option to designate a financial asset at fair value through...

                1. 4.1.5. Despite paragraphs 4.1.1–4.1.4, an entity may, at initial recognition, irrevocably...

            2. 4.2 CLASSIFICATION OF FINANCIAL LIABILITIES

              1. 4.2.1. An entity shall classify all financial liabilities as subsequently measured...

              2. Option to designate a financial liability at fair value through...

                1. 4.2.2. An entity may, at initial recognition, irrevocably designate a financial...

            3. 4.3 EMBEDDED DERIVATIVES

              1. 4.3.1. An embedded derivative is a component of a hybrid contract...

              2. Hybrid contracts with financial asset hosts

                1. 4.3.2. If a hybrid contract contains a host that is an...

              3. Other hybrid contracts

                1. 4.3.3. If a hybrid contract contains a host that is not...

                2. 4.3.4. If an embedded derivative is separated, the host contract shall...

                3. 4.3.5. Despite paragraphs 4.3.3 and 4.3.4, if a contract contains one...

                4. 4.3.6. If an entity is required by this Standard to separate...

                5. 4.3.7. If an entity is unable to measure reliably the fair...

            4. 4.4 RECLASSIFICATION

              1. 4.4.1. When, and only when, an entity changes its business model...

              2. 4.4.2. An entity shall not reclassify any financial liability.

              3. 4.4.3. The following changes in circumstances are not reclassifications for the...

          5. CHAPTER 5 Measurement

            1. 5.1 INITIAL MEASUREMENT

              1. 5.1.1. Except for trade receivables within the scope of paragraph 5.1.3,...

              2. 5.1.1 A However, if the fair value of the financial asset or...

              3. 5.1.2. When an entity uses settlement date accounting for an asset...

              4. 5.1.3. Despite the requirement in paragraph 5.1.1, at initial recognition, an...

            2. 5.2 SUBSEQUENT MEASUREMENT OF FINANCIAL ASSETS

              1. 5.2.1. After initial recognition, an entity shall measure a financial asset...

              2. 5.2.2. An entity shall apply the impairment requirements in Section 5.5...

              3. 5.2.3. An entity shall apply the hedge accounting requirements in paragraphs...

            3. 5.3 SUBSEQUENT MEASUREMENT OF FINANCIAL LIABILITIES

              1. 5.3.1. After initial recognition, an entity shall measure a financial liability...

              2. 5.3.2. An entity shall apply the hedge accounting requirements in paragraphs...

            4. 5.4 AMORTISED COST MEASUREMENT

              1. Financial assets

                1. Effective interest method

                  1. 5.4.1. Interest revenue shall be calculated by using the effective interest...

                  2. 5.4.2. An entity that, in a reporting period, calculates interest revenue...

                2. Modification of contractual cash flows

                  1. 5.4.3. When the contractual cash flows of a financial asset are...

                3. Write-off

                  1. 5.4.4. An entity shall directly reduce the gross carrying amount of...

            5. 5.5 IMPAIRMENT

              1. Recognition of expected credit losses

                1. General approach

                  1. 5.5.1. An entity shall recognise a loss allowance for expected credit...

                  2. 5.5.2. An entity shall apply the impairment requirements for the recognition...

                  3. 5.5.3. Subject to paragraphs 5.5.13–5.5.16, at each reporting date, an entity...

                  4. 5.5.4. The objective of the impairment requirements is to recognise lifetime...

                  5. 5.5.5. Subject to paragraphs 5.5.13–5.5.16, if, at the reporting date, the...

                  6. 5.5.6. For loan commitments and financial guarantee contracts, the date that...

                  7. 5.5.7. If an entity has measured the loss allowance for a...

                  8. 5.5.8. An entity shall recognise in profit or loss, as an...

                2. Determining significant increases in credit risk

                  1. 5.5.9. At each reporting date, an entity shall assess whether the...

                  2. 5.5.10. An entity may assume that the credit risk on a...

                  3. 5.5.11. If reasonable and supportable forward-looking information is available without undue...

                3. Modified financial assets

                  1. 5.5.12. If the contractual cash flows on a financial asset have...

                4. Purchased or originated credit-impaired financial assets

                  1. 5.5.13. Despite paragraphs 5.5.3 and 5.5.5, at the reporting date, an...

                  2. 5.5.14. At each reporting date, an entity shall recognise in profit...

              2. Simplified approach for trade receivables, contract assets and lease receivables...

                1. 5.5.15. Despite paragraphs 5.5.3 and 5.5.5, an entity shall always measure...

                2. 5.5.16. An entity may select its accounting policy for trade receivables,...

              3. Measurement of expected credit losses

                1. 5.5.17. An entity shall measure expected credit losses of a financial...

                2. 5.5.18. When measuring expected credit losses, an entity need not necessarily...

                3. 5.5.19. The maximum period to consider when measuring expected credit losses...

                4. 5.5.20. However, some financial instruments include both a loan and an...

            6. 5.6 RECLASSIFICATION OF FINANCIAL ASSETS

              1. 5.6.1. If an entity reclassifies financial assets in accordance with paragraph...

              2. 5.6.2. If an entity reclassifies a financial asset out of the...

              3. 5.6.3. If an entity reclassifies a financial asset out of the...

              4. 5.6.4. If an entity reclassifies a financial asset out of the...

              5. 5.6.5. If an entity reclassifies a financial asset out of the...

              6. 5.6.6. If an entity reclassifies a financial asset out of the...

              7. 5.6.7. If an entity reclassifies a financial asset out of the...

            7. 5.7 GAINS AND LOSSES

              1. 5.7.1. A gain or loss on a financial asset or financial...

              2. 5.7.1 A Dividends are recognised in profit or loss only when:

              3. 5.7.2. A gain or loss on a financial asset that is...

              4. 5.7.3. A gain or loss on financial assets or financial liabilities...

              5. 5.7.4. If an entity recognises financial assets using settlement date accounting...

              6. Investments in equity instruments

                1. 5.7.5. At initial recognition, an entity may make an irrevocable election...

                2. 5.7.6. If an entity makes the election in paragraph 5.7.5, it...

              7. Liabilities designated as at fair value through profit or loss...

                1. 5.7.7. An entity shall present a gain or loss on a...

                2. 5.7.8. If the requirements in paragraph 5.7.7 would create or enlarge...

                3. 5.7.9. Despite the requirements in paragraphs 5.7.7 and 5.7.8, an entity...

              8. Assets measured at fair value through other comprehensive income

                1. 5.7.10. A gain or loss on a financial asset measured at...

                2. 5.7.11. As described in paragraph 5.7.10, if a financial asset is...

          6. CHAPTER 6 Hedge accounting

            1. 6.1 OBJECTIVE AND SCOPE OF HEDGE ACCOUNTING

              1. 6.1.1. The objective of hedge accounting is to represent, in the...

              2. 6.1.2. An entity may choose to designate a hedging relationship between...

              3. 6.1.3. For a fair value hedge of the interest rate exposure...

            2. 6.2 HEDGING INSTRUMENTS

              1. Qualifying instruments

                1. 6.2.1. A derivative measured at fair value through profit or loss...

                2. 6.2.2. A non-derivative financial asset or a non-derivative financial liability measured...

                3. 6.2.3. For hedge accounting purposes, only contracts with a party external...

              2. Designation of hedging instruments

                1. 6.2.4. A qualifying instrument must be designated in its entirety as...

                2. 6.2.5. An entity may view in combination, and jointly designate as...

                3. 6.2.6. However, a derivative instrument that combines a written option and...

            3. 6.3 HEDGED ITEMS

              1. Qualifying items

                1. 6.3.1. A hedged item can be a recognised asset or liability,...

                2. 6.3.2. The hedged item must be reliably measurable.

                3. 6.3.3. If a hedged item is a forecast transaction (or a...

                4. 6.3.4. An aggregated exposure that is a combination of an exposure...

                5. 6.3.5. For hedge accounting purposes, only assets, liabilities, firm commitments or...

                6. 6.3.6. However, as an exception to paragraph 6.3.5, the foreign currency...

              2. Designation of hedged items

                1. 6.3.7. An entity may designate an item in its entirety or...

            4. 6.4 QUALIFYING CRITERIA FOR HEDGE ACCOUNTING

              1. 6.4.1. A hedging relationship qualifies for hedge accounting only if all...

            5. 6.5 ACCOUNTING FOR QUALIFYING HEDGING RELATIONSHIPS

              1. 6.5.1. An entity applies hedge accounting to hedging relationships that meet...

              2. 6.5.2. There are three types of hedging relationships:

              3. 6.5.3. If the hedged item is an equity instrument for which...

              4. 6.5.4. A hedge of the foreign currency risk of a firm...

              5. 6.5.5. If a hedging relationship ceases to meet the hedge effectiveness...

              6. 6.5.6. An entity shall discontinue hedge accounting prospectively only when the...

              7. 6.5.7. An entity shall apply:

              8. Fair value hedges

                1. 6.5.8. As long as a fair value hedge meets the qualifying...

                2. 6.5.9. When a hedged item in a fair value hedge is...

                3. 6.5.10. Any adjustment arising from paragraph 6.5.8(b) shall be amortised to...

              9. Cash flow hedges

                1. 6.5.11. As long as a cash flow hedge meets the qualifying...

                2. 6.5.12. When an entity discontinues hedge accounting for a cash flow...

              10. Hedges of a net investment in a foreign operation

                1. 6.5.13. Hedges of a net investment in a foreign operation, including...

                2. 6.5.14. The cumulative gain or loss on the hedging instrument relating...

              11. Accounting for the time value of options

                1. 6.5.15. When an entity separates the intrinsic value and time value...

              12. Accounting for the forward element of forward contracts and foreign...

                1. 6.5.16. When an entity separates the forward element and the spot...

            6. 6.6 HEDGES OF A GROUP OF ITEMS

              1. Eligibility of a group of items as the hedged item...

                1. 6.6.1. A group of items (including a group of items that...

              2. Designation of a component of a nominal amount

                1. 6.6.2. A component that is a proportion of an eligible group...

                2. 6.6.3. A layer component of an overall group of items (for...

              3. Presentation

                1. 6.6.4. For a hedge of a group of items with offsetting...

                2. 6.6.5. For assets and liabilities that are hedged together as a...

              4. Nil net positions

                1. 6.6.6. When the hedged item is a group that is a...

            7. 6.7 OPTION TO DESIGNATE A CREDIT EXPOSURE AS MEASURED AT FAIR...

              1. Eligibility of credit exposures for designation at fair value through...

                1. 6.7.1. If an entity uses a credit derivative that is measured...

              2. Accounting for credit exposures designated at fair value through profit...

                1. 6.7.2. If a financial instrument is designated in accordance with paragraph...

                2. 6.7.3. An entity shall discontinue measuring the financial instrument that gave...

                3. 6.7.4. When an entity discontinues measuring the financial instrument that gives...

          7. CHAPTER 7 Effective date and transition

            1. 7.1 EFFECTIVE DATE

              1. 7.1.1. An entity shall apply this Standard for annual periods beginning...

              2. 7.1.2. Despite the requirements in paragraph 7.1.1, for annual periods beginning...

              3. 7.1.3. Annual Improvements to IFRSs 2010–2012 Cycle, issued in December 2013,...

              4. 7.1.4. IFRS 15, issued in May 2014, amended paragraphs 3.1.1, 4.2.1,...

            2. 7.2 TRANSITION

              1. 7.2.1. An entity shall apply this Standard retrospectively, in accordance with...

              2. 7.2.2. For the purposes of the transition provisions in paragraphs 7.2.1,...

              3. Transition for classification and measurement (Chapters 4 and 5)

                1. 7.2.3. At the date of initial application, an entity shall assess...

                2. 7.2.4. If, at the date of initial application, it is impracticable...

                3. 7.2.5. If, at the date of initial application, it is impracticable...

                4. 7.2.6. If an entity measures a hybrid contract at fair value...

                5. 7.2.7. If an entity has applied paragraph 7.2.6 then at the...

                6. 7.2.8. At the date of initial application an entity may designate:...

                7. 7.2.9. At the date of initial application an entity:

                8. 7.2.10. At the date of initial application, an entity:

                9. 7.2.11. If it is impracticable (as defined in IAS 8) for...

                10. 7.2.12. If an entity previously accounted at cost (in accordance with...

                11. 7.2.13. If an entity previously accounted for a derivative liability that...

                12. 7.2.14. At the date of initial application, an entity shall determine...

                13. 7.2.15. Despite the requirement in paragraph 7.2.1, an entity that adopts...

                14. 7.2.16. If an entity prepares interim financial reports in accordance with...

                15. Impairment (Section 5.5)

                  1. 7.2.17. An entity shall apply the impairment requirements in Section 5.5...

                  2. 7.2.18. At the date of initial application, an entity shall use...

                  3. 7.2.19. When determining whether there has been a significant increase in...

                  4. 7.2.20. If, at the date of initial application, determining whether there...

              4. Transition for hedge accounting (Chapter 6)

                1. 7.2.21. When an entity first applies this Standard, it may choose...

                2. 7.2.22. Except as provided in paragraph 7.2.26, an entity shall apply...

                3. 7.2.23. To apply hedge accounting from the date of initial application...

                4. 7.2.24. Hedging relationships that qualified for hedge accounting in accordance with...

                5. 7.2.25. On initial application of the hedge accounting requirements of this...

                6. 7.2.26. As an exception to prospective application of the hedge accounting...

              5. Entities that have applied IFRS 9 (2009), IFRS 9 (2010)...

                1. 7.2.27. An entity shall apply the transition requirements in paragraphs 7.2.1–7.2.26...

                2. 7.2.28. An entity that applied IFRS 9 (2009), IFRS 9 (2010)...

            3. 7.3 WITHDRAWAL OF IFRIC 9, IFRS 9 (2009), IFRS 9 (2010)...

              1. 7.3.1. This Standard supersedes IFRIC 9 Reassessment of Embedded Derivatives. The...

              2. 7.3.2. This Standard supersedes IFRS 9 (2009), IFRS 9 (2010) and...

      2. Appendix A Defined terms

      3. Appendix B Application guidance

        1. SCOPE (CHAPTER 2)

          1. B2.1 Some contracts require a payment based on climatic, geological or...

          2. B2.2 This Standard does not change the requirements relating to employee...

          3. B2.3 Sometimes, an entity makes what it views as a ‘strategic...

          4. B2.4 This Standard applies to the financial assets and financial liabilities...

          5. B2.5 Financial guarantee contracts may have various legal forms, such as...

          6. B2.6 Assertions that an issuer regards contracts as insurance contracts are...

        2. RECOGNITION AND DERECOGNITION (CHAPTER 3)

          1. Initial recognition (Section 3.1)

            1. B3.1.1 As a consequence of the principle in paragraph 3.1.1, an...

            2. B3.1.2 The following are examples of applying the principle in paragraph...

            3. Regular way purchase or sale of financial assets

              1. B3.1.3 A regular way purchase or sale of financial assets is...

              2. B3.1.4 A contract that requires or permits net settlement of the...

              3. B3.1.5 The trade date is the date that an entity commits...

              4. B3.1.6 The settlement date is the date that an asset is...

          2. Derecognition of financial assets (Section 3.2)

            1. B3.2.1 The following flow chart illustrates the evaluation of whether and...

            2. Arrangements under which an entity retains the contractual rights to...

              1. B3.2.2 The situation described in paragraph 3.2.4(b) (when an entity retains...

              2. B3.2.3 In applying paragraph 3.2.5, the entity could be, for example,...

            3. Evaluation of the transfer of risks and rewards of ownership...

              1. B3.2.4 Examples of when an entity has transferred substantially all the...

              2. B3.2.5 Examples of when an entity has retained substantially all the...

              3. B3.2.6 If an entity determines that as a result of the...

            4. Evaluation of the transfer of control

              1. B3.2.7 An entity has not retained control of a transferred asset...

              2. B3.2.8 The transferee has the practical ability to sell the transferred...

              3. B3.2.9 That the transferee is unlikely to sell the transferred asset...

              4. Transfers that qualify for derecognition

                1. B3.2.10 An entity may retain the right to a part of...

                2. B3.2.11 When measuring the fair values of the part that continues...

              5. Transfers that do not qualify for derecognition

                1. B3.2.12 The following is an application of the principle outlined in...

              6. Continuing involvement in transferred assets

                1. B3.2.13 The following are examples of how an entity measures a...

            5. All assets

              1. (a) If a guarantee provided by an entity to pay for...

            6. Assets measured at amortised cost

              1. (b) If a put option obligation written by an entity or...

            7. Assets measured at fair value

              1. (c) If a call option right retained by an entity prevents...

              2. (d) If a put option written by an entity prevents a...

              3. (e) If a collar, in the form of a purchased call...

              4. All transfers

                1. B3.2.14 To the extent that a transfer of a financial asset...

                2. B3.2.15 To the extent that a transfer of a financial asset...

              5. Examples

                1. B3.2.16 The following examples illustrate the application of the derecognition principles...

                2. B3.2.17 This paragraph illustrates the application of the continuing involvement approach...

          3. Derecognition of financial liabilities (Section 3.3)

            1. B3.3.1 A financial liability (or part of it) is extinguished when...

            2. B3.3.2 If an issuer of a debt instrument repurchases that instrument,...

            3. B3.3.3 Payment to a third party, including a trust (sometimes called...

            4. B3.3.4 If a debtor pays a third party to assume an...

            5. B3.3.5 Although legal release, whether judicially or by the creditor, results...

            6. B3.3.6 For the purpose of paragraph 3.3.2, the terms are substantially...

            7. B3.3.7 In some cases, a creditor releases a debtor from its...

        3. CLASSIFICATION (CHAPTER 4)

          1. Classification of financial assets (Section 4.1)

            1. The entity's business model for managing financial assets

              1. B4.1.1 Paragraph 4.1.1(a) requires an entity to classify financial assets on...

              2. B4.1.2 An entity's business model is determined at a level that...

              3. B4.1.2 A An entity's business model refers to how an entity manages...

              4. B4.1.2B An entity's business model for managing financial assets is a...

              5. A business model whose objective is to hold assets in...

                1. B4.1.2C Financial assets that are held within a business model whose...

                2. B4.1.3 Although the objective of an entity's business model may be...

                3. B4.1.3 A The business model may be to hold assets to collect...

                4. B4.1.3B Sales that occur for other reasons, such as sales made...

                5. B4.1.4 The following are examples of when the objective of an...

              6. A business model whose objective is achieved by both collecting...

                1. B4.1.4 A An entity may hold financial assets in a business model...

                2. B4.1.4B Compared to a business model whose objective is to hold...

                3. B4.1.4C The following are examples of when the objective of the...

              7. Other business models

                1. B4.1.5 Financial assets are measured at fair value through profit or...

                2. B4.1.6 A portfolio of financial assets that is managed and whose...

            2. Contractual cash flows that are solely payments of principal and...

              1. B4.1.7 Paragraph 4.1.1(b) requires an entity to classify a financial on...

              2. B4.1.7 A Contractual cash flows that are solely payments of principal and...

              3. B4.1.7B In accordance with paragraph 4.1.3(a), principal is the fair value...

              4. B4.1.8 An entity shall assess whether contractual cash flows are solely...

              5. B4.1.9 Leverage is a contractual cash flow characteristic of some financial...

              6. Consideration for the time value of money

                1. B4.1.9 A Time value of money is the element of interest that...

                2. B4.1.9B However, in some cases, the time value of money element...

                3. B4.1.9C When assessing a modified time value of money element, the...

                4. B4.1.9D When assessing a modified time value of money element, an...

                5. B4.1.9E In some jurisdictions, the government or a regulatory authority sets...

              7. Contractual terms that change the timing or amount of contractual...

                1. B4.1.10 If a financial asset contains a contractual term that could...

                2. B4.1.11 The following are examples of contractual terms that result in...

                3. B4.1.12 Despite paragraph B4.1.10, a financial asset that would otherwise meet...

                4. B4.1.13 The following examples illustrate contractual cash flows that are solely...

                5. B4.1.14 The following examples illustrate contractual cash flows that are not...

                6. B4.1.15 In some cases a financial asset may have contractual cash...

                7. B4.1.16 This may be the case if the financial asset represents...

                8. B4.1.17 However, the fact that a financial asset is non-recourse does...

                9. B4.1.18 A contractual cash flow characteristic does not affect the classification...

                10. B4.1.19 In almost every lending transaction the creditor's instrument is ranked...

              8. Contractually linked instruments

                1. B4.1.20 In some types of transactions, an issuer may prioritise payments...

                2. B4.1.21 In such transactions, a tranche has cash flow characteristics that...

                3. B4.1.22 An entity must look through until it can identify the...

                4. B4.1.23 The underlying pool must contain one or more instruments that...

                5. B4.1.24 The underlying pool of instruments may also include instruments that:...

                6. B4.1.25 If any instrument in the pool does not meet the...

                7. B4.1.26 If the holder cannot assess the conditions in paragraph B4.1.21...

          2. Option to designate a financial asset or financial liability as...

            1. B4.1.27 Subject to the conditions in paragraphs 4.1.5 and 4.2.2, this...

            2. B4.1.28 The decision of an entity to designate a financial asset...

            3. Designation eliminates or significantly reduces an accounting mismatch

              1. B4.1.29 Measurement of a financial asset or financial liability and classification...

              2. B4.1.30 The following examples show when this condition could be met....

              3. B4.1.31 In cases such as those described in the preceding paragraph,...

              4. B4.1.32 It would not be acceptable to designate only some of...

            4. A group of financial liabilities or financial assets and financial...

              1. B4.1.33 An entity may manage and evaluate the performance of a...

              2. B4.1.34 For example, an entity may use this condition to designate...

              3. B4.1.35 As noted above, this condition relies on the way the...

              4. B4.1.36 Documentation of the entity's strategy need not be extensive but...

          3. Embedded derivatives (Section 4.3)

            1. B4.3.1 When an entity becomes a party to a hybrid contract...

            2. B4.3.2 If a host contract has no stated or predetermined maturity...

            3. B4.3.3 An embedded non-option derivative (such as an embedded forward or...

            4. B4.3.4 Generally, multiple embedded derivatives in a single hybrid contract are...

            5. B4.3.5 The economic characteristics and risks of an embedded derivative are...

            6. B4.3.6 An example of a hybrid contract is a financial instrument...

            7. B4.3.7 In the case of a puttable instrument that can be...

            8. B4.3.8 The economic characteristics and risks of an embedded derivative are...

            9. Instruments containing embedded derivatives

              1. B4.3.9 As noted in paragraph B4.3.1, when an entity becomes a...

              2. B4.3.10 Such designation may be used whether paragraph 4.3.3 requires the...

            10. Reassessment of embedded derivatives

              1. B4.3.11 In accordance with paragraph 4.3.3, an entity shall assess whether...

              2. B4.3.12 Paragraph B4.3.11 does not apply to embedded derivatives in contracts...

          4. Reclassification of financial assets (Section 4.4)

            1. Reclassification of financial assets

              1. B4.4.1 Paragraph 4.4.1 requires an entity to reclassify financial assets if...

              2. B4.4.2 A change in the objective of the entity's business model...

              3. B4.4.3 The following are not changes in business model:

        4. MEASUREMENT (CHAPTER 5)

          1. Initial measurement (Section 5.1)

            1. B5.1.1 The fair value of a financial instrument at initial recognition...

            2. B5.1.2 If an entity originates a loan that bears an off-market...

            3. B5.1.2 A The best evidence of the fair value of a financial...

          2. Subsequent measurement (Sections 5.2 and 5.3)

            1. B5.2.1 If a financial instrument that was previously recognised as a...

            2. B5.2.2 The following example illustrates the accounting for transaction costs on...

            3. B5.2.2 A The subsequent measurement of a financial asset or financial liability...

            4. Investments in equity instruments and contracts on those investments

              1. B5.2.3 All investments in equity instruments and contracts on those instruments...

              2. B5.2.4 Indicators that cost might not be representative of fair value...

              3. B5.2.5 The list in paragraph B5.2.4 is not exhaustive. An entity...

              4. B5.2.6 Cost is never the best estimate of fair value for...

          3. Amortised cost measurement (Section 5.4)

            1. Effective interest method

              1. B5.4.1 In applying the effective interest method, an entity identifies fees...

              2. B5.4.2 Fees that are an integral part of the effective interest...

              3. B5.4.3 Fees that are not an integral part of the effective...

              4. B5.4.4 When applying the effective interest method, an entity generally amortises...

              5. B5.4.5 For floating-rate financial assets and floating-rate financial liabilities, periodic re-estimation...

              6. B5.4.6 If an entity revises its estimates of payments or receipts...

              7. B5.4.7 In some cases a financial asset is considered credit-impaired at...

            2. Transaction costs

              1. B5.4.8 Transaction costs include fees and commission paid to agents (including...

            3. Write-off

              1. B5.4.9 Write-offs can relate to a financial asset in its entirety...

          4. Impairment (Section 5.5)

            1. Collective and individual assessment basis

              1. B5.5.1 In order to meet the objective of recognising lifetime expected...

              2. B5.5.2 Lifetime expected credit losses are generally expected to be recognised...

              3. B5.5.3 However, depending on the nature of the financial instruments and...

              4. B5.5.4 In some circumstances an entity does not have reasonable and...

              5. B5.5.5 For the purpose of determining significant increases in credit risk...

              6. B5.5.6 Paragraph 5.5.4 requires that lifetime expected credit losses are recognised...

            2. Timing of recognising lifetime expected credit losses

              1. B5.5.7 The assessment of whether lifetime expected credit losses should be...

              2. B5.5.8 For loan commitments, an entity considers changes in the risk...

              3. B5.5.9 The significance of a change in the credit risk since...

              4. B5.5.10 The risk of a default occurring on financial instruments that...

              5. B5.5.11 Because of the relationship between the expected life and the...

              6. B5.5.12 An entity may apply various approaches when assessing whether the...

              7. B5.5.13 The methods used to determine whether credit risk has increased...

              8. B5.5.14 However, for some financial instruments, or in some circumstances, it...

            3. Determining whether credit risk has increased significantly since initial recognition...

              1. B5.5.15 When determining whether the recognition of lifetime expected credit losses...

              2. B5.5.16 Credit risk analysis is a multifactor and holistic analysis; whether...

              3. B5.5.17 The following non-exhaustive list of information may be relevant in...

              4. B5.5.18 In some cases, the qualitative and non-statistical quantitative information available...

              5. More than 30 days past due rebuttable presumption

                1. B5.5.19 The rebuttable presumption in paragraph 5.5.11 is not an absolute...

                2. B5.5.20 An entity can rebut this presumption. However, it can do...

                3. B5.5.21 An entity cannot align the timing of significant increases in...

              6. Financial instruments that have low credit risk at the reporting...

                1. B5.5.22 The credit risk on a financial instrument is considered low...

                2. B5.5.23 To determine whether a financial instrument has low credit risk,...

                3. B5.5.24 Lifetime expected credit losses are not recognised on a financial...

            4. Modifications

              1. B5.5.25 In some circumstances, the renegotiation or modification of the contractual...

              2. B5.5.26 Accordingly the date of the modification shall be treated as...

              3. B5.5.27 If the contractual cash flows on a financial asset have...

          5. Measurement of expected credit losses

            1. Expected credit losses

              1. B5.5.28 Expected credit losses are a probability-weighted estimate of credit losses...

              2. B5.5.29 For financial assets, a credit loss is the present value...

              3. B5.5.30 For undrawn loan commitments, a credit loss is the present...

              4. B5.5.31 An entity's estimate of expected credit losses on loan commitments...

              5. B5.5.32 For a financial guarantee contract, the entity is required to...

              6. B5.5.33 For a financial asset that is credit-impaired at the reporting...

              7. B5.5.34 When measuring a loss allowance for a lease receivable, the...

              8. B5.5.35 An entity may use practical expedients when measuring expected credit...

            2. Definition of default

              1. B5.5.36 Paragraph 5.5.9 requires that when determining whether the credit risk...

              2. B5.5.37 When defining default for the purposes of determining the risk...

            3. Period over which to estimate expected credit losses

              1. B5.5.38 In accordance with paragraph 5.5.19, the maximum period over which...

              2. B5.5.39 However, in accordance with paragraph 5.5.20, some financial instruments include...

              3. B5.5.40 When determining the period over which the entity is expected...

            4. Probability-weighted outcome

              1. B5.5.41 The purpose of estimating expected credit losses is neither to...

              2. B5.5.42 Paragraph 5.5.17(a) requires the estimate of expected credit losses to...

              3. B5.5.43 For lifetime expected credit losses, an entity shall estimate the...

            5. Time value of money

              1. B5.5.44 Expected credit losses shall be discounted to the reporting date,...

              2. B5.5.45 For purchased or originated credit-impaired financial assets, expected credit losses...

              3. B5.5.46 Expected credit losses on lease receivables shall be discounted using...

              4. B5.5.47 The expected credit losses on a loan commitment shall be...

              5. B5.5.48 Expected credit losses on financial guarantee contracts or on loan...

            6. Reasonable and supportable information

              1. B5.5.49 For the purpose of this Standard, reasonable and supportable information...

              2. B5.5.50 An entity is not required to incorporate forecasts of future...

              3. B5.5.51 An entity need not undertake an exhaustive search for information...

              4. B5.5.52 Historical information is an important anchor or base from which...

              5. B5.5.53 When using historical credit loss experience in estimating expected credit...

              6. B5.5.54 Expected credit losses reflect an entity's own expectations of credit...

            7. Collateral

              1. B5.5.55 For the purposes of measuring expected credit losses, the estimate...

          6. Reclassification of financial assets (Section 5.6)

            1. B5.6.1 If an entity reclassifies financial assets in accordance with paragraph...

            2. B5.6.2 However, an entity is not required to separately recognise interest...

          7. Gains and losses (Section 5.7)

            1. B5.7.1 Paragraph 5.7.5 permits an entity to make an irrevocable election...

            2. B5.7.1 A Unless paragraph 4.1.5 applies, paragraph 4.1.2 A requires that a financial...

            3. B5.7.2 An entity applies IAS 21 to financial assets and financial...

            4. B5.7.2 A For the purpose of recognising foreign exchange gains and losses...

            5. B5.7.3 Paragraph 5.7.5 permits an entity to make an irrevocable election...

            6. B5.7.4 If there is a hedging relationship between a non-derivative monetary...

            7. Liabilities designated as at fair value through profit or loss...

              1. B5.7.5 When an entity designates a financial liability as at fair...

              2. B5.7.6 To make that determination, an entity must assess whether it...

              3. B5.7.7 That determination is made at initial recognition and is not...

              4. B5.7.8 If such a mismatch would be created or enlarged, the...

              5. B5.7.9 Amounts presented in other comprehensive income shall not be subsequently...

              6. B5.7.10 The following example describes a situation in which an accounting...

              7. B5.7.11 In the example in paragraph B5.7.10, there is a contractual...

              8. B5.7.12 For the purposes of applying the requirements in paragraphs 5.7.7...

              9. The meaning of ‘credit risk’ (paragraphs 5.7.7 and 5.7.8)

                1. B5.7.13 IFRS 7 defines credit risk as ‘the risk that one...

                2. B5.7.14 For the purposes of applying the requirement in paragraph 5.7.7(a),...

                3. B5.7.15 The following are examples of asset-specific performance risk:

              10. Determining the effects of changes in credit risk

                1. B5.7.16 For the purposes of applying the requirement in paragraph 5.7.7(a),...

                2. B5.7.17 Changes in market conditions that give rise to market risk...

                3. B5.7.18 If the only significant relevant changes in market conditions for...

                4. B5.7.19 The example in paragraph B5.7.18 assumes that changes in fair...

                5. B5.7.20 As with all fair value measurements, an entity's measurement method...

        5. HEDGE ACCOUNTING (CHAPTER 6)

          1. Hedging instruments (Section 6.2)

            1. Qualifying instruments

              1. B6.2.1 Derivatives that are embedded in hybrid contracts, but that are...

              2. B6.2.2 An entity's own equity instruments are not financial assets or...

              3. B6.2.3 For hedges of foreign currency risk, the foreign currency risk...

              4. Written options

                1. B6.2.4 This Standard does not restrict the circumstances in which a...

            2. Designation of hedging instruments

              1. B6.2.5 For hedges other than hedges of foreign currency risk, when...

              2. B6.2.6 A single hedging instrument may be designated as a hedging...

          2. Hedged items (Section 6.3)

            1. Qualifying items

              1. B6.3.1 A firm commitment to acquire a business in a business...

              2. B6.3.2 An equity method investment cannot be a hedged item in...

              3. B6.3.3 Paragraph 6.3.4 permits an entity to designate as hedged items...

              4. B6.3.4 When designating the hedged item on the basis of the...

              5. B6.3.5 Paragraph 6.3.6 states that in consolidated financial statements the foreign...

              6. B6.3.6 If a hedge of a forecast intragroup transaction qualifies for...

            2. Designation of hedged items

              1. B6.3.7 A component is a hedged item that is less than...

              2. Risk components

                1. B6.3.8 To be eligible for designation as a hedged item, a...

                2. B6.3.9 When identifying what risk components qualify for designation as a...

                3. B6.3.10 When designating risk components as hedged items, an entity considers...

                4. B6.3.11 When designating a risk component as a hedged item, the...

                5. B6.3.12 An entity can also designate only changes in the cash...

                6. B6.3.13 There is a rebuttable presumption that unless inflation risk is...

                7. B6.3.14 For example, an entity issues debt in an environment in...

                8. B6.3.15 A contractually specified inflation risk component of the cash flows...

              3. Components of a nominal amount

                1. B6.3.16 There are two types of components of nominal amounts that...

                2. B6.3.17 An example of a component that is a proportion is...

                3. B6.3.18 A layer component may be specified from a defined, but...

                4. B6.3.19 If a layer component is designated in a fair value...

                5. B6.3.20 A layer component that includes a prepayment option is not...

              4. Relationship between components and the total cash flows of an...

                1. B6.3.21 If a component of the cash flows of a financial...

                2. B6.3.22 For example, in the case of a financial liability whose...

                3. B6.3.23 However, in the case of a fixed-rate financial liability whose...

                4. B6.3.24 If a variable-rate financial liability bears interest of (for example)...

                5. B6.3.25 A similar example of a non-financial item is a specific...

          3. Qualifying criteria for hedge accounting (Section 6.4)

            1. Hedge effectiveness

              1. B6.4.1 Hedge effectiveness is the extent to which changes in the...

              2. B6.4.2 When designating a hedging relationship and on an ongoing basis,...

              3. B6.4.3 For the avoidance of doubt, the effects of replacing the...

            2. Economic relationship between the hedged item and the hedging instrument...

              1. B6.4.4 The requirement that an economic relationship exists means that the...

              2. B6.4.5 If the underlyings are not the same but are economically...

              3. B6.4.6 The assessment of whether an economic relationship exists includes an...

            3. The effect of credit risk

              1. B6.4.7 Because the hedge accounting model is based on a general...

              2. B6.4.8 An example of credit risk dominating a hedging relationship is...

            4. Hedge ratio

              1. B6.4.9 In accordance with the hedge effectiveness requirements, the hedge ratio...

              2. B6.4.10 However, the designation of the hedging relationship using the same...

              3. B6.4.11 Examples of relevant considerations in assessing whether an accounting outcome...

            5. Frequency of assessing whether the hedge effectiveness requirements are met...

              1. B6.4.12 An entity shall assess at the inception of the hedging...

            6. Methods for assessing whether the hedge effectiveness requirements are met...

              1. B6.4.13 This Standard does not specify a method for assessing whether...

              2. B6.4.14 For example, when the critical terms (such as the nominal...

              3. B6.4.15 The fact that a derivative is in or out of...

              4. B6.4.16 Conversely, if the critical terms of the hedging instrument and...

              5. B6.4.17 If there are changes in circumstances that affect hedge effectiveness,...

              6. B6.4.18 An entity's risk management is the main source of information...

              7. B6.4.19 An entity's documentation of the hedging relationship includes how it...

          4. Accounting for qualifying hedging relationships (Section 6.5)

            1. B6.5.1 An example of a fair value hedge is a hedge...

            2. B6.5.2 The purpose of a cash flow hedge is to defer...

            3. B6.5.3 A hedge of a firm commitment (for example, a hedge...

            4. Measurement of hedge ineffectiveness

              1. B6.5.4 When measuring hedge ineffectiveness, an entity shall consider the time...

              2. B6.5.5 To calculate the change in the value of the hedged...

              3. B6.5.6 The change in the value of the hedged item determined...

            5. Rebalancing the hedging relationship and changes to the hedge ratio...

              1. B6.5.7 Rebalancing refers to the adjustments made to the designated quantities...

              2. B6.5.8 Rebalancing is accounted for as a continuation of the hedging...

              3. B6.5.9 Adjusting the hedge ratio allows an entity to respond to...

              4. B6.5.10 For example, an entity hedges an exposure to Foreign Currency...

              5. B6.5.11 Not every change in the extent of offset between the...

              6. B6.5.12 Fluctuation around a constant hedge ratio (and hence the related...

              7. B6.5.13 Conversely, if changes in the extent of offset indicate that...

              8. B6.5.14 Rebalancing means that, for hedge accounting purposes, after the start...

              9. B6.5.15 Rebalancing does not apply if the risk management objective for...

              10. B6.5.16 If a hedging relationship is rebalanced, the adjustment to the...

              11. B6.5.17 Adjusting the hedge ratio by increasing the volume of the...

              12. B6.5.18 Adjusting the hedge ratio by decreasing the volume of the...

              13. B6.5.19 Adjusting the hedge ratio by increasing the volume of the...

              14. B6.5.20 Adjusting the hedge ratio by decreasing the volume of the...

              15. B6.5.21 When rebalancing a hedging relationship, an entity shall update its...

            6. Discontinuation of hedge accounting

              1. B6.5.22 Discontinuation of hedge accounting applies prospectively from the date on...

              2. B6.5.23 An entity shall not de-designate and thereby discontinue a hedging...

              3. B6.5.24 For the purposes of this Standard, an entity's risk management...

              4. B6.5.25 The discontinuation of hedge accounting can affect:

              5. B6.5.26 A hedging relationship is discontinued in its entirety when, as...

              6. B6.5.27 A part of a hedging relationship is discontinued (and hedge...

              7. B6.5.28 An entity can designate a new hedging relationship that involves...

            7. Accounting for the time value of options

              1. B6.5.29 An option can be considered as being related to a...

              2. B6.5.30 The characteristics of the hedged item, including how and when...

              3. B6.5.31 The accounting for the time value of options in accordance...

              4. B6.5.32 The accounting for the time value of options in accordance...

              5. B6.5.33 If the actual time value and the aligned time value...

            8. Accounting for the forward element of forward contracts and foreign...

              1. B6.5.34 A forward contract can be considered as being related to...

              2. B6.5.35 The characteristics of the hedged item, including how and when...

              3. B6.5.36 The accounting for the forward element of a forward contract...

              4. B6.5.37 The accounting for the forward element of forward contracts in...

              5. B6.5.38 If the actual forward element and the aligned forward element...

              6. B6.5.39 When an entity separates the foreign currency basis spread from...

          5. Hedge of a group of items (Section 6.6)

            1. Hedge of a net position

              1. Eligibility for hedge accounting and designation of a net position...

                1. B6.6.1 A net position is eligible for hedge accounting only if...

                2. B6.6.2 For example, Entity A, whose functional currency is its local...

                3. B6.6.3 If Entity A did manage foreign currency risk on a...

                4. B6.6.4 When a group of items that constitute a net position...

              2. Application of the hedge effectiveness requirements to a hedge of...

                1. B6.6.5 When an entity determines whether the hedge effectiveness requirements of...

                2. B6.6.6 Similarly, if in the example in paragraph B6.6.5 the entity...

              3. Cash flow hedges that constitute a net position

                1. B6.6.7 When an entity hedges a group of items with offsetting...

                2. B6.6.8 For example, an entity has a net position that consists...

                3. B6.6.9 For a cash flow hedge of a net position, the...

                4. B6.6.10 Similarly, if in the example the entity had a nil...

            2. Layers of groups of items designated as the hedged item...

              1. B6.6.11 For the same reasons noted in paragraph B6.3.19, designating layer...

              2. B6.6.12 A hedging relationship can include layers from several different groups...

            3. Presentation of hedging instrument gains or losses

              1. B6.6.13 If items are hedged together as a group in a...

              2. B6.6.14 If the group of items does not have any offsetting...

              3. B6.6.15 If the group of items does have offsetting risk positions...

              4. B6.6.16 For some types of fair value hedges, the objective of...

        6. EFFECTIVE DATE AND TRANSITION (CHAPTER 7)

          1. Transition (Section 7.2)

            1. Financial assets held for trading

              1. B7.2.1 At the date of initial application of this Standard, an...

            2. Impairment

              1. B7.2.2 On transition, an entity should seek to approximate the credit...

              2. B7.2.3 In order to determine the loss allowance on financial instruments...

              3. B7.2.4 An entity with little historical information may use information from...

        7. DEFINITIONS (APPENDIX A)

          1. Derivatives

            1. BA.1 Typical examples of derivatives are futures and forward, swap and...

            2. BA.2 The definition of a derivative in this Standard includes contracts...

            3. BA.3 One of the defining characteristics of a derivative is that...

            4. BA.4 A regular way purchase or sale gives rise to a...

            5. BA.5 The definition of a derivative refers to non-financial variables that...

          2. Financial assets and liabilities held for trading

            1. BA.6 Trading generally reflects active and frequent buying and selling, and...

            2. BA.7 Financial liabilities held for trading include:

            3. BA.8 The fact that a liability is used to fund trading...

      4. Appendix C Amendments to other Standards

        1. IFRS 1 First-time Adoption of International Financial Reporting Standards

          1. C1 Paragraph 29 is amended to read as follows, paragraphs 39B,...

          2. C2 In Appendix B, paragraphs B1–B6 are amended to read as...

            1. Derecognition of financial assets and financial liabilities

              1. B2 Except as permitted by paragraph B3, a first-time adopter shall...

              2. B3 Despite paragraph B2, an entity may apply the derecognition requirements...

            2. Hedge accounting

              1. B4 As required by IFRS 9, at the date of transition...

              2. B5 An entity shall not reflect in its opening IFRS statement...

              3. B6 If, before the date of transition to IFRSs, an entity...

            3. Classification and measurement of financial instruments

              1. B8 An entity shall assess whether a financial asset meets the...

              2. B8A If it is impracticable to assess a modified time value...

              3. B8B If it is impracticable to assess whether the fair value...

              4. B8C If it is impracticable (as defined in IAS 8) for...

            4. Impairment of financial assets

              1. B8D An entity shall apply the impairment requirements in Section 5.5...

              2. B8E At the date of transition to IFRSs, an entity shall...

              3. B8F When determining whether there has been a significant increase in...

              4. B8G If, at the date of transition to IFRSs, determining whether...

            5. Embedded derivatives

              1. B9 A first-time adopter shall assess whether an embedded derivative is...

          3. C3 In Appendix D, paragraphs D1, D14, D15, D19 and D20...

            1. Designation of previously recognised financial instruments

              1. D19 IFRS 9 permits a financial liability (provided it meets certain...

              2. D19A An entity may designate a financial asset as measured at...

              3. D19B An entity may designate an investment in an equity instrument...

              4. D19C For a financial liability that is designated as a financial...

            2. Fair value measurement of financial assets or financial liabilities at...

              1. D20 Despite the requirements of paragraphs 7 and 9, an entity...

            3. Designation of contracts to buy or sell a non-financial item...

              1. D33 IFRS 9 permits some contracts to buy or sell a...

          4. C4 In Appendix E, a heading and paragraphs E1 and E2...

            1. Exemption from the requirement to restate comparative information for IFRS...

              1. E1 If an entity's first IFRS reporting period begins before 1...

              2. E2 An entity that chooses to present comparative information that does...

        2. IFRS 2 Share-based Payment

          1. C5 Paragraph 6 is amended to read as follows, and paragraph...

        3. IFRS 3 Business Combinations

          1. C6 Paragraphs 16, 42, 53, 56 and 58 are amended to...

          2. C7 In Appendix B, paragraph B41 is amended to read as...

        4. IFRS 4 Insurance Contracts

          1. C8 [Not applicable to requirements]

          2. C9 Paragraphs 3, 4, 7, 8, 12, 34, 35 and 45...

            1. Discretionary participation features in financial instruments

              1. 35. The requirements in paragraph 34 also apply to a financial...

              2. 41C [Deleted]

              3. 41D [Deleted]

              4. 41F [Deleted]

              5. 41H IFRS 9, as issued in July 2014, amended paragraphs 3,...

              6. 45. Notwithstanding paragraph 4.4.1 of IFRS 9, when an insurer changes...

          3. C10 In Appendix A the defined term ‘deposit component’ is amended...

          4. C11 In Appendix B, paragraphs B18–B20 are amended to read as...

        5. IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

          1. C12 Paragraph 5 is amended to read as follows, paragraphs 44F...

        6. IFRS 7 Financial Instruments: Disclosures

          1. C13 Paragraphs 2–5, 8–11, 14, 20, 28–30, 36 and 42C–42E are...

            1. SCOPE

              1. 3. This IFRS shall be applied by all entities to all...

              2. 4. This IFRS applies to recognised and unrecognised financial instruments. Recognised...

              3. 5. This IFRS applies to contracts to buy or sell a...

              4. 5A The credit risk disclosure requirements in paragraph 35A–35N apply to...

              5. 8. The carrying amounts of each of the following categories, as...

              6. Financial assets or financial liabilities at fair value through profit...

                1. 9. If the entity has designated as measured at fair value...

                2. 10. If the entity has designated a financial liability as at...

                3. 10A If an entity has designated a financial liability as at...

                4. 11. The entity shall also disclose:

              7. Investments in equity instruments designated at fair value through other...

                1. 11A If an entity has designated investments in equity instruments to...

                2. 11B If an entity derecognised investments in equity instruments measured at...

                3. 12–12A [Deleted]

                4. 12B An entity shall disclose if, in the current or previous...

                5. 12C For each reporting period following reclassification until derecognition, an entity...

                6. 12D If, since its last annual reporting date, an entity has...

                7. 14. An entity shall disclose:

                8. 16. [Deleted]

                9. 16A The carrying amount of financial assets measured at fair value...

                10. 20. An entity shall disclose the following items of income, expense,...

                11. 20A An entity shall disclose an analysis of the gain or...

              8. Hedge accounting

                1. 21A An entity shall apply the disclosure requirements in paragraphs 21B–24F...

                2. 21B An entity shall present the required disclosures in a single...

                3. 21C When paragraphs 22A–24F require the entity to separate by risk...

                4. 21D To meet the objectives in paragraph 21A, an entity shall...

                5. The risk management strategy

                  1. 22. [Deleted]

                  2. 22A An entity shall explain its risk management strategy for each...

                  3. 22B To meet the requirements in paragraph 22A, the information should...

                  4. 22C When an entity designates a specific risk component as a...

                6. The amount, timing and uncertainty of future cash flows

                  1. 23. [Deleted]

                  2. 23A Unless exempted by paragraph 23C, an entity shall disclose by...

                  3. 23B To meet the requirement in paragraph 23A, an entity shall...

                  4. 23C In situations in which an entity frequently resets (ie discontinues...

                  5. 23D An entity shall disclose by risk category a description of...

                  6. 23E If other sources of hedge ineffectiveness emerge in a hedging...

                  7. 23F For cash flow hedges, an entity shall disclose a description...

                7. The effects of hedge accounting on financial position and performance...

                  1. 24. [Deleted]

                  2. 24A An entity shall disclose, in a tabular format, the following...

                  3. 24B An entity shall disclose, in a tabular format, the following...

                  4. 24C An entity shall disclose, in a tabular format, the following...

                  5. 24D When the volume of hedging relationships to which the exemption...

                  6. 24E An entity shall provide a reconciliation of each component of...

                  7. 24F An entity shall disclose the information required in paragraph 24E...

                8. Option to designate a credit exposure as measured at fair...

                  1. 24G If an entity designated a financial instrument, or a proportion...

                  2. 28. In some cases, an entity does not recognise a gain...

                  3. 29. Disclosures of fair value are not required:

                  4. 30. In the case described in paragraph 29(c), an entity shall...

              9. Credit risk

                1. Scope and objectives

                  1. 35A An entity shall apply the disclosure requirements in paragraphs 35F–35N...

                  2. 35B The credit risk disclosures made in accordance with paragraphs 35F–35N...

                  3. 35C An entity need not duplicate information that is already presented...

                  4. 35D To meet the objectives in paragraph 35B, an entity shall...

                  5. 35E If the disclosures provided in accordance with paragraphs 35F–35N are...

                2. The credit risk management practices

                  1. 35F An entity shall explain its credit risk management practices and...

                  2. 35G An entity shall explain the inputs, assumptions and estimation techniques...

                3. Quantitative and qualitative information about amounts arising from expected credit...

                  1. 35H To explain the changes in the loss allowance and the...

                  2. 35I To enable users of financial statements to understand the changes...

                  3. 35J To enable users of financial statements to understand the nature...

                  4. 35K To enable users of financial statements to understand the effect...

                  5. 35L An entity shall disclose the contractual amount outstanding on financial...

                4. Credit risk exposure

                  1. 35M To enable users of financial statements to assess an entity's...

                  2. 35N For trade receivables, contract assets and lease receivables to which...

                  3. 36. For all financial instruments within the scope of this IFRS,...

                  4. 37. [Deleted]

                  5. 42C For the purposes of applying the disclosure requirements in paragraphs...

                  6. Transferred financial assets that are not derecognised in their entirety...

                    1. 42D An entity may have transferred financial assets in such a...

                  7. Transferred financial assets that are derecognised in their entirety

                    1. 42E To meet the objectives set out in paragraph 42B(b), when...

            2. INITIAL APPLICATION OF IFRS 9

              1. 42I In the reporting period that includes the date of initial...

              2. 42J In the reporting period that includes the date of initial...

              3. 42K In the reporting period that an entity first applies the...

              4. 42L When required by paragraph 42K, an entity shall disclose the...

              5. 42M When required by paragraph 42K, an entity shall disclose the...

              6. 42N When required by paragraph 42K, an entity shall disclose the...

              7. 42O When an entity presents the disclosures set out in paragraphs...

              8. 42P On the date of initial application of Section 5.5 of...

              9. 42Q In the reporting period that includes the date of initial...

              10. 42R In accordance with paragraph 7.2.4 of IFRS 9, if it...

              11. 42S In accordance with paragraph 7.2.5 of IFRS 9, if it...

            3. EFFECTIVE DATE AND TRANSITION

              1. 44E [Deleted]

              2. 44F [Deleted]

              3. 44H–44J [Deleted]

              4. 44N [Deleted]

              5. 44S–44W [Deleted]

              6. 44Y [Deleted]

              7. 44Z IFRS 9, as issued in July 2014, amended paragraphs 2–5,...

              8. 44ZA In accordance with paragraph 7.1.2 of IFRS 9, for annual...

          2. C14 In Appendix A, the definition of ‘credit risk rating grades’...

          3. C15 In Appendix B, paragraphs B1, B5, B9, B10, B22 and...

            1. Credit risk management practices (paragraphs 35F–35G)

              1. B8A Paragraph 35F(b) requires the disclosure of information about how an...

              2. B8B To assist users of financial statements in evaluating an entity's...

              3. B8C Paragraph 35G(a) requires the disclosure of information about the basis...

            2. Changes in the loss allowance (paragraph 35H)

              1. B8D In accordance with paragraph 35H, an entity is required to...

              2. B8E For loan commitments and financial guarantee contracts the loss allowance...

            3. Collateral (paragraph 35K)

              1. B8F Paragraph 35K requires the disclosure of information that will enable...

              2. B8G A narrative description of collateral and its effect on amounts...

            4. Credit risk exposure (paragraphs 35M–35N)

              1. B8H Paragraph 35M requires the disclosure of information about an entity's...

              2. B8I The number of credit risk rating grades used to disclose...

              3. B8J When an entity has measured expected credit losses on a...

              4. B9 Paragraphs 35K(a) and 36(a) require disclosure of the amount that...

              5. B10 Activities that give rise to credit risk and the associated...

              6. B22 Interest rate risk arises on interest-bearing financial instruments recognised in...

              7. B27 In accordance with paragraph 40(a), the sensitivity of profit or...

          4. C16 Appendix D is deleted.

        7. IFRS 9 Financial Instruments (issued November 2009)

          1. C17 Paragraph 8.1.1 is amended to read as follows:

        8. IFRS 9 Financial Instruments (issued October 2010)

          1. C18 Paragraphs 7.1.1 and 7.3.2 are amended to read as follows,...

        9. IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS...

          1. C19 Paragraphs 7.1.1, 7.1.2 and 7.3.2 are amended to read as...

        10. IFRS 13 Fair Value Measurement

          1. C20 Paragraph 52 is amended to read as follows:

          2. C21 In Appendix C, paragraph C5 is added:

        11. IAS 1 Presentation of Financial Statements

          1. C22 In paragraph 7, the definition of ‘other comprehensive income’ and...

        12. IAS 2 Inventories

          1. C23 Paragraph 2 is amended to read as follows, paragraphs 40A,...

        13. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

          1. C24 Paragraph 53 is amended to read as follows, paragraphs 54A,...

        14. IAS 10 Events after the Reporting Period

          1. C25 Paragraph 9 is amended to read as follows and paragraph...

        15. IAS 12 Income Taxes

          1. C26 Paragraph 20 is amended to read as follows, paragraphs 96,...

        16. IAS 20 Accounting for Government Grants and Disclosure of Government Assistance

          1. C27 Paragraph 10A is amended to read as follows, paragraphs 44...

        17. IAS 21 The Effects of Changes in Foreign Exchange Rates

          1. C28 [Not applicable to requirements]

          2. C29 Paragraphs 3, 4, 5, 27 and 52 are amended to...

        18. IAS 23 Borrowing Costs

          1. C30 Paragraph 6 is amended to read as follows and paragraph...

        19. IAS 28 Investments in Associates and Joint Ventures

          1. C31 Paragraphs 40–42 are amended to read as follows, and paragraphs...

        20. IAS 32 Financial Instruments: Presentation

          1. C32 [Not applicable to requirements]

          2. C33 Paragraphs 3, 4, 8, 12, 23, 31, 42 and 96C...

            1. SCOPE

              1. 4. This Standard shall be applied by all entities to all...

              2. 8. This Standard shall be applied to those contracts to buy...

              3. 12. The following terms are defined in Appendix A of IFRS...

              4. 23. With the exception of the circumstances described in paragraphs 16A...

              5. 31. IFRS 9 deals with the measurement of financial assets and...

              6. 42. A financial asset and a financial liability shall be offset...

              7. 96C The classification of instruments under this exception shall be restricted...

              8. 97F [Deleted]

              9. 97H [Deleted]

              10. 97P [Deleted]

              11. 97R IFRS 9, as issued in July 2014, amended paragraphs 3,...

          3. C34 In the Appendix, paragraphs AG2 and AG30 are amended to...

        21. IAS 33 Earnings per Share

          1. C35 Paragraph 34 is amended to read as follows and paragraph...

        22. IAS 36 Impairment of Assets

          1. C36 Paragraphs 2, 4 and 5 are amended to read as...

        23. IAS 37 Provisions, Contingent Liabilities and Contingent Assets

          1. C37 Paragraph 2 is amended to read as follows, paragraphs 97...

        24. IAS 39 Financial Instruments: Recognition and Measurement

          1. C38 [Not applicable to requirements]

          2. C39 The heading above paragraph 1 and paragraph 1 are deleted....

          3. C40 Paragraph 2 is amended to read as follows and paragraphs...

          4. C41 Paragraphs 8 and 9 are amended to read as follows:...

          5. C42 Headings and paragraphs 10–70 and paragraph 79 are deleted.

          6. C43 Paragraphs 71, 88–90 and 96 are amended to read as...

            1. Fair value hedges

              1. 89. If a fair value hedge meets the conditions in paragraph...

              2. 90. If only particular risks attributable to a hedged item are...

              3. 96. More specifically, a cash flow hedge is accounted for as...

          7. C44 Paragraphs 103C, 103D, 103F, 103K, 104 and 108C are amended...

          8. C45 In Appendix A, headings and paragraphs AG1–AG93 and paragraph AG96...

          9. C46 In Appendix A, paragraphs AG95, AG114 and AG118 are amended...

          10. C47 In Appendix A, the heading above paragraph AG133 is amended...

        25. IFRIC 2 Members' Shares in Cooperative Entities and Similar Instruments

          1. C48 Below the heading ‘References’, the reference to IAS 39 is...

          2. C49 In the Appendix, paragraphs A8 and A10 are amended to...

        26. IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation...

          1. C50 Below the heading ‘References’, the reference to IAS 39 is...

        27. IFRIC 10 Interim Financial Reporting and Impairment

          1. C51 Below the heading ‘References’, the reference to IAS 39 is...

            1. CONSENSUS

              1. 8. An entity shall not reverse an impairment loss recognised in...

              2. 11–13 [Deleted]

              3. 14. IFRS 9, as issued in July 2014, amended paragraphs 1,...

        28. IFRIC 12 Service Concession Arrangements

          1. C52 Below the heading ‘References’, the reference to IAS 39 is...

        29. IFRIC 16 Hedges of a Net Investment in a Foreign Operation

          1. C53 A reference to IFRS 9 Financial Instruments is added under...

          2. C54 Paragraphs 3, 5–7, 14 and 16 are amended to read...

          3. C55 In the Appendix, paragraphs AG1 and AG8 are amended to...

        30. IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

          1. C56 Below the heading ‘References’, the reference to IAS 39 is...

            1. CONSENSUS

              1. 5. The issue of an entity's equity instruments to a creditor...

              2. 7. If the fair value of the equity instruments issued cannot...

              3. 9. The difference between the carrying amount of the financial liability...

              4. 10. When only part of the financial liability is extinguished, consideration...

              5. 14. [Deleted]

              6. 16. [Deleted]

              7. 17. IFRS 9, as issued in July 2014, amended paragraphs 4,...

        31. SIC INTERPRETATION 27 Evaluating the Substance of Transactions Involving the Legal Form of...

          1. C57 Below the heading ‘References’, the reference to IAS 39 is...

            1. EFFECTIVE DATE

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