Any new asset or liability arising when a financial

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Any new asset or liability arising when a financial asset is derecognised is recorded at market value at the date of transfer. If the market value of the remaining interest or any new asset (derivative) arising on the derecognition of another financial asset cannot be reasonably measured, the remaining interest or new asset should be measured at zero and any gain or loss on the transfer should be calculated as if the market value is zero. (IFRS9.3.2.11/IAS39.25) If as a result of transfer, a financial asset is derecognised in its entirety but the transfer results in the entity obtaining a new financial asset or assuming a new financial liability, or a servicing liability, the entity shall recognise the new financial asset, financial liability or servicing liability at fair value. Accounting for loan participations (Accounting Standard for Financial Instruments 42, Practical Guidance on Accounting Standard for Financial Instruments 41) Derecognition of a receivable is allowed only when certain conditions are met, such as when almost all the risks and economic rewards of that receivable are transferred. (IAS39.16,19,21) There are no specific rules, so the derecognition of loan participations is assessed based on the general requirements for derecognition. Accounting for debt assumptions (in-substance defeasance) (Accounting Standard for Financial Instruments 42, Practical Guidance on Accounting Standard for Financial Instruments 46) The related bonds may be derecognised only when the likelihood of a retrospective claim to the issuer is extremely low. (IFRS9.B3.3.3/IAS39.AG59) Payment to a third party, including a trust does not, by itself, relieve the debtor of its primary obligation to the creditor, in the absence of legal release, and does not meet the criteria for derecognition. Exchange of financial liabilities and alteration of conditions There are no specific rules. (IFRS9.3.3.2 B3.3.6/IAS39.40,AG62) An exchange between an existing borrower and lender of debt instruments with substantially different terms, or a substantial modification of the terms of an existing financial liability (or a part of it), shall be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
41 JGAAP IFRS Other financial liabilities (Accounting Standard for Financial Instruments 26) In principle, financial instruments are recognised on the balance sheet at the amount of the debt. If an entity issues a bond at a price that is lower or higher than its denomination, then an entity can use amortised cost. In this case, in addition to an effective interest method, a straight line method is allowed. (IFRS 9.4.2.1, IAS 39.47) After initial recognition, an entity shall measure all financial liabilities at amortised cost using the effective interest method except for financial liabilities at fair value through profit or loss.

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