IFRS 9 Hedge Accounting – Fair Value and Cash Flow Hedge

IFRS 9 Hedge Accounting

IFRS 9 Hedge Accounting APPLIES to all hedge relationships, with the EXCEPTION of fair value hedges of the interest rate exposure of a portfolio of financial assets or financial liabilities. There are various effective hedging strategies under to REDUCE ‘Market Risk’, depending on the asset or portfolio of assets being hedged. … Read More

IFRS 9 Derivatives – Definition, Types and Accounting

IFRS 9 Derivatives

IFRS 9 Derivatives STATES the definition and further EXPLAINS that derivatives including those linked to ‘unquoted equity investments‘ are MEASURED at fair value. [Value changes are recognized in Profit or Loss UNLESS the entity has elected to apply Hedge Accounting by designating the derivative as a hedging instrument in an … Read More

Modification of Financial Instruments – IFRS 9 (Insights)

Modification of Financial Instruments

Modification of Financial Instruments a Concept as per IFRS 9 (i.e. ‘Modification/Restructuring’ of financial liabilities and financial assets). Modification of Financial Instruments The ‘Modification Gain or Loss‘ is determined by recalculating the gross carrying amount of the Financial Asset or Financial Liability by discounting the modified cash flows using the … Read More

Financial Instruments Definition — IFRS 9: Brief Overview

Financial Instruments Definition

Financial Instruments Definition as per IFRS 9 STATES it could be ‘Financial Asset‘, ‘Financial Liability‘ or an ‘Equity Instrument‘ of another entity. The objective of IFRS 9 is to ESTABLISH principles for the financial reporting of financial assets and liabilities that will present relevant and valuable information to users of … Read More