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{{this}} specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items. | {{this}} specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items. | ||
| − | {{this}} requires an entity to | + | {{this}} requires an entity to recognize a financial asset or a financial liability in its statement of financial position when it becomes party to the contractual provisions of the instrument. At initial recognition, an entity measures a financial asset or a financial liability at its fair value plus or minus, in the case of a financial asset or a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or the financial liability. |
| − | + | ===Financial assets=== | |
| − | Financial assets | + | When an entity first recognizes a financial asset, it classifies it based on the entity’s business model for managing the asset and the asset’s contractual cash flow characteristics, as follows: |
| − | + | * Amortized cost—a financial asset is measured at amortized cost if both of the following conditions are met: | |
| − | When an entity first | ||
| − | |||
| − | * | ||
** The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and | ** The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and | ||
** the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. | ** the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. | ||
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* Fair value through profit or loss—any financial assets that are not held in one of the two business models mentioned are measured at fair value through profit or loss. | * Fair value through profit or loss—any financial assets that are not held in one of the two business models mentioned are measured at fair value through profit or loss. | ||
When, and only when, an entity changes its business model for managing financial assets it must reclassify all affected financial assets. | When, and only when, an entity changes its business model for managing financial assets it must reclassify all affected financial assets. | ||
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{{this}} is Copyright: [https://IFRS.org IFRS Foundation] | {{this}} is Copyright: [https://IFRS.org IFRS Foundation] | ||
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|sort=00009 | |sort=00009 | ||
|level=1 | |level=1 | ||
| + | |keywords=IFRS, Standard, Financial, Reporting, GAAP, Fixed, Asset, Fixed Assets, Liability, Contracts | ||
| + | |description=IFRS 9 specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items | ||
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IFRS 9 Financial Instruments specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.
IFRS 9 Financial Instruments requires an entity to recognize a financial asset or a financial liability in its statement of financial position when it becomes party to the contractual provisions of the instrument. At initial recognition, an entity measures a financial asset or a financial liability at its fair value plus or minus, in the case of a financial asset or a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or the financial liability.
When an entity first recognizes a financial asset, it classifies it based on the entity’s business model for managing the asset and the asset’s contractual cash flow characteristics, as follows:
When, and only when, an entity changes its business model for managing financial assets it must reclassify all affected financial assets.
IFRS 9 Financial Instruments is Copyright: IFRS Foundation
Asset Efficiency
| ID | Name | Level | x |
|---|---|---|---|
| IFRS | International Financial Reporting Standards | 0 | IFRS |
| IFRS09 | IFRS 9 Financial Instruments | 1 | IFRS09 |