IFRS 9(Partly) Financial Instruments Accounting

IFRS 9 Financial Instruments

1. Measured at amortized cost Measured at Fair Value through P/L Measured at Fair Value through OCI Business Model + Contractual CF All other financial assets Choice: equity investment not held for trading Debt: Business Model + Contractual CF test

2. Liabilities related to failed derecognition of assets Financial guarantee contracts Some loan commitments

3. Debt Instruments Amortized Costs FV-OCI FVTPL Initial Recognition : Fair Value + Transaction Costs Subsequent Measurement : Interest Income using EIR in P&L Change in FV-Ignored Impairment : Based on Expected Loss Derecognition Gain or Loss : P&L Initial Recognition : Fair Value + Transaction Costs Subsequent Measurement : Interest Income in P&L Change in FV – Other Comprehensive Income Impairment : Based on Expected Loss Derecognition Gain or Loss : Transferred from OCI to P&L Initial Recognition : Fair Value + Transaction Costs Subsequent Measurement : Interest Income in P&L Change in FV in P&L Impairment : - Derecognition Gain or Loss : P&L

4. Equity Instruments Amortized Costs FV-OCI FVTPL Initial Recognition : - Subsequent Measurement : - Impairment : - Derecognition Gain or Loss : - Initial Recognition : Fair Value + Transaction Costs Subsequent Measurement : Interest Income in P&L Change in FV – Other Comprehensive Income Impairment : Based on Expected Loss Derecognition Gain or Loss : Transferred from OCI to P&L Initial Recognition : Fair Value + Transaction Costs Subsequent Measurement : Dividend Income in P&L Change in FV in P&L Impairment : - Derecognition Gain or Loss : P&L

5. 3 stages of FA No stage All financial assets subject to impairment, except for: Trade Receivables Contract Assets(IFRS 15) without significant financing component Lease Receivables(IFRS 16) if chosen to measure loss allowance at lifetime ECL

6. *Separate if: Economic Characteristics not closely related Separate Instrument would meet the definition of a derivative Hybrid Instrument not at FV through P/L [Apply measurement rules to the host contract and to derivative separately. If not possible, entire contract at FVTPL.] ** Do Not Separate [Apply measurement rules to the entire Hybrid Contract]