fin_guarant_decision_tree - fair value through profit or...

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Was the financial guarantee entered into or retained on the transfer of financial assets or financial liabilities and the transfer does not qualify for derecognition or continuing involvement? Apply IAS 39.29-37 on and IAS 39:AG 47-52 on derecognition NO YES NO Does the contract require specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due under the original or modified terms of a debt instrument? YES NO Apply IAS 39 and account for contract as derivative (financial liability at fair value through profit or loss) Was the financial guarantee contract designated at inception as
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Unformatted text preview: fair value through profit or loss? Has the issuer previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting applicable to insurance contracts and elected to apply IFRS 4 to the individual contract? Apply IAS 39.43 and 47c: after initial recognition at fair value the issuer shall measure contract at higher of: Amount determined in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets Amount initially recognised less when appropriate cumulative amortisation in accordance with IAS 18 Revenue YES YES NO NO YES Apply IFRS 4 Insurance Contracts...
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