...
The columns show different attributes of the business model and the rows show the necessary differentiation between the characteristics of the cash flows.
Diagram: IFRS 9 accounting categories in the solution
...
Based on the combination of an accounting category and the asset side or liability side, the diagram 1 below shows the differentiation, in which case if and how fair value changes related to market prices and fair value changes related to the changes in credit risk are considered in
...
Diagram 1 refers to the underlying IFRS 9 rules.
Diagram 1: IFRS 9 accounting category assignment and impact on valuation elements
In general, the classifiation classification process requires the analysis of the following questions for each product design:
Diagram 2: IFRS 9 category assignment rules
If the assignement assignment of an accoutning accounting category changes during the lifecycle of a financial instrument, a reclassification will be triggered.(For details of the classification process, please read more in the manual: Classification IFRS 9.)