IFRS 9

This topic has 3 replies, 2 voices, and was last updated 7 years ago by P2-D2.

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September 13, 2018 at 9:15 pm #474522
gangsta1
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Sir can you please explain the default classification for a debt asset as well as the subsequent measurement.
September 15, 2018 at 9:36 pm #474699
P2-D2
Keymaster
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For debt instruments the default treatment is FVTOCI, unless the fair value option is chosen. If it meets the business model test and contractual cash flow test then it will be treated as amortised cost.
September 16, 2018 at 2:02 am #474718
gangsta1
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But sir, isn’t FVTPL the default classification for all financial assets?
September 16, 2018 at 9:13 pm #474772
P2-D2
Keymaster
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FVTPL is the default for equity instruments.
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