IAS 39 Recognition & Measurement* establishes principles for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. It also prescribes principles for derecognizing financial instruments and for hedge accounting. The presentation and the disclosure of financial instruments are the subjects of IAS 32 Presentation and IFRS 7 Disclosures respectively.
A financial instrument is recognized in the financial statements when the entity becomes a party to the financial instrument contract. An entity removes a financial liability from its statement of financial position when its obligation is extinguished. An entity removes a financial asset from its statement of financial position when its contractual rights to the asset’s cash flows expire; when it has transferred the asset and substantially all the risks and rewards of ownership; or when it has transferred the asset, and has retained some substantial risks and rewards of ownership, but the other party may sell the asset. The risks and rewards retained are recognized as an asset.
A financial asset or financial liability is measured initially at fair value. Subsequent measurement depends on the category of financial instrument. Some categories are measured at amortized cost, and some at fair value. In limited circumstances other measurement bases apply, for example, certain financial guarantee contracts.
IAS 39 Recognition & Measurement* is Copyright: IFRS Foundation
| ID | Name | Level | x |
|---|---|---|---|
| IFRS | International Financial Reporting Standards | 0 | IFRS |
| IAS39 | IAS 39 Recognition & Measurement* | 1 | IAS39 |
| ID | Name | Clear | x |
|---|---|---|---|
| IAS32 | IAS 32 Presentation | IAS32 | |
| IFRS17 | IFRS 17 Insurance Contracts | IFRS17 | |
| IFRS07 | IFRS 7 Disclosures | IFRS07 | |
| IFRS09 | IFRS 9 Financial Instruments | IFRS09 |