Please enable JavaScript.
Coggle requires JavaScript to display documents.
MFRS 9: Financial Instruments (FI) - Coggle Diagram
MFRS 9: Financial Instruments (FI)
History
IAS39 replaced by IFRS9 after 1st january 2018
Classification of
Financial assets
I. Business model -hold asset to collect contractual cash flow
II. Contractual cash flow characteristic-cash flow on specified dates that are solely principal + Interest
Initial recognition
When an entity becomes a party to the contractual provisions of the instrument- focus on contract not on future economic benefits. Regular may transaction:
Trade date accounting - Entity recognized an asset bought or sold on the trade dat
Settlement date accounting - entity recognised an asset bought or sold on the date when the asset is delivered or on settlement date (FV may change between date of trade and date of settlement)
Derecognition of FI
An entity should derecognised a financial assets when:
Contractual rights to the cash flows from the financial assets expired
Entity transfer
(i) financial asset
(ii) substantially all the risks and rewards of ownership of financial asset to another party
And transfer qualifies for derecognition. IFRS 9
Measurement of Financial asset
Measured at fv through profit or loss
-All other financial asset
Measured at fv through OCI
hoice; equity investments not held for trading, debt; business model + contractual CF test
Measured at amortized cost
business model + contractual CF
Classification of financial Liabilities
1.FL at fair value through profit or loss
*Held for trading
*Designated at FV through PL
FL at amortized cost
*all other liabilities
Type of FL
Financial guarantee contracts
Some loan commitments
liabilities failed to recognition of assets