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This is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets

An entity that derecognises a financial asset in its entirety includes the difference between the carrying amount of the asset and the consideration received (including any cumulative gain or loss that had been recognised directly in equity through other comprehensive income i.e. recycling) in the income statement (profit or loss). An entity that derecognises only a part of a larger financial asset allocates the previous carrying amount of the financial … Read more

This is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets Retain all risks and rewards Retain all risks and rewards

If this comparison demonstrates that the entity’s exposure to the variability in the present value of the future net cash flows (discounted at the appropriate current market interest rate) from the financial asset does not change significantly as a result of the transfer, the … Read more

This is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets Retain control of the asset Retain control of the asset

Under IFRS 9, control in this context is the power to govern so as to obtain benefits. In the context of derecognition under IFRS 9, control is based on whether the transferee has the practical ability to sell the asset. This IFRS 9 notion addresses … Read more

This is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets

Once an entity has established that it has transferred a financial asset either by transferring the contractual rights to receive the cash flows or under a qualifying pass-through arrangement as discussed above, it carries out the risks and rewards test. This requires the entity to evaluate whether it has:

• transferred substantially all the risks

This is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets

If there is no transfer of contractual rights under IFRS 9 3.2.4(a), an entity should determine if there is an obligation to pass on the cash flows of the financial asset under a pass-through arrangement. [IFRS 9 3.2.4(b)… Read more

This is part of a decision model for the derecognition of financial assets. The derecognition can be a full derecognition, a full continued recognition, a full derecognition with recognition of new assets or liabilities retained or a continued involvement. The model is starting here. Derecognition of financial assets

If the contractual rights to the cash flows from the asset still exist, the asset is transferred before derecognition is possible. IFRS 9 identifies two ways in which a transfer can be achieved. An entity ‘transfers’ a financial asset only if it either:

• transfers the contractual rights to