Last Updated on 03/03/2021 by 75385885

IFRS 9 prescribes a single classification and measurement model for financial assets, dependent on both:

Financial instruments at amortised cost	Debt instruments at fair value through other comprehensive income	Financial instruments at fair value through profit or loss
Business model: Hold and collect Contractual cash flows: solely payments of principal and interest	Business model: Hold and sell Contractual cash flows: solely payments of principal and interest	Financial assets that do not meet the criteria for AC and FVOCI and are not held for trading. Financial assets designated at initial recognition (designation is irrevocable)
Subsequent measurement: Amortised cost using the effective interest method. All gains and losses recorded in profit or loss.	Subsequent measurement: Fair value with all gains and losses (other than impairments that are in profit or loss) recognised in other comprehensive income. Changes in fair value subsequently recycled to profit or loss on derecognition or reclassification.	Subsequent measurement: Fair value with all gains and losses recognised in profit or loss.
Equity instruments at fair value through other comprehensive income
Equity instruments not held for trading. Designation at initial recognition is optional and irrevocable.
Subsequent measurement: Fair value with all gains and losses recognised in profit or loss.

IFRS Synonyms:

Classification model, Measurement model, Classification models, Measurement models