Highlights of the blueprint:
IFRS 9 calls for the classification of financial instruments.
The accounting category is decisive for the
a) Valuation approach: Depending on the accounting category, the financial instruments are based on the concept of AC or FV during initial and subsequent measurement
b) Disclosure of valuation components: Depending on the accounting category, specific valuation elements need to be disclosed in the P&L or OCI
IFRS9 Classiciation of financial assets is related to
- Business Model
- Cash Flow Characteristics
- Fair Value Option Decision
Business Model, Cash Flow Characteristics (SPPI-Test-Flag) and Fair Value-Option Flag can be alternatively
- delivered and imported on individual level,
- can be defined in the setup (LINK SWIMLANE TILE CLASSIFICATION SETUP)
For the SPPI-Test an additional option can be provided on request. In this case the SPPI-Test will be performed semi-automated.
The classification of financial liabilities under IFRS9 does not follow the approach for the classification of financial assets; rather it remains broadly the same as under IAS 39. Financial liabilities are measured at amortised cost or fair value through profit or loss (when they are held for trading).
This section is split into the following topics: