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Financial Liabilities dercog

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial Liabilities dercog

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarP2-D2.
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  • October 13, 2017 at 9:32 pm #410873
    Avatarabdulbasit16
    Member
    • Topics: 165
    • Replies: 154
    • ☆☆☆

    Sir its written in the bpp text that if a change in the financial liability’s contract is more than 10% it shud be considered as an extinguishment of the original contract and making of new one.

    But if the change is only to part of the liability and it only results in a change of more than 10% to that part only not the whole liability. So will derecognise the whole liability in that case or just the part of it?

    October 15, 2017 at 9:56 am #411073
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    I believe that it is the entire liability that we derecognise and rerecognise it under the new terms.

    Thanks

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