ipsas 29—financial instruments: recognition and measurement - IFAC

More documents

Recommendations

Info

Yes FINANCIAL INSTRUMENTS: RECOGNITION AND MEASUREMENT Consolidate all controlled entities, (including any Special Purpose Entities) [paragraph 17] Determine whether the derecognition principles below are applied to a part or all of an asset (or group of similar assets) [paragraph 18] Have the rights to the cash flows from the asset expired or been waived? [paragraph No Has the entity transferred its rights to receive the cash flows from the asset? [paragraph 20(a)] No Has the entity assumed an obligation to pay the cash flows from the asset that meets the conditions in paragraph 21? [paragraph 20(b)] No Has the entity transferred substantially all risks and rewards? [paragraph 22(a)] No Has the entity retained substantially all risks and rewards? [paragraph 22(b)] No Has the entity retained control of the asset? [paragraph 22 (c)] Yes Continue to recognise the asset to the extent of the entity’s continuing involvement. 1087 Yes No Yes Yes No Derecognize the asset Continue to recognize the asset Derecognize the asset Continue to recognize the asset Derecognize the asset IPSAS 29 APPLICATION GUIDANCE PUBLIC SECTOR
FINANCIAL INSTRUMENTS: RECOGNITION AND MEASUREMENT Arrangements Under Which an Entity Retains the Contractual Rights to Receive the Cash Flows of a Financial Asset, but Assumes a Contractual Obligation to Pay the Cash Flows to One or More Recipients (paragraph 20(b)) AG52. The situation described in paragraph 20(b) (when an entity retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients) occurs, for example, if the entity is a special purpose entity (SPE) or trust, and issues to investors beneficial interests in the underlying financial assets that it owns and provides servicing of those financial assets. In that case, the financial assets qualify for derecognition if the conditions in paragraphs 21 and 22 are met. AG53. In applying paragraph 21, the entity could be, for example, the originator of the financial asset, or it could be a group that includes a consolidated SPE that has acquired the financial asset and passes on cash flows to unrelated third party investors. Evaluation of the Transfer of Risks and Rewards of Ownership (paragraph 22) AG54. Examples of when an entity has transferred substantially all the risks and rewards of ownership are: (a) An unconditional sale of a financial asset; (b) A sale of a financial asset together with an option to repurchase the financial asset at its fair value at the time of repurchase; and (c) A sale of a financial asset together with a put or call option that is deeply out of the money (i.e., an option that is so far out of the money it is highly unlikely to go into the money before expiry). AG55. Examples of when an entity has retained substantially all the risks and rewards of ownership are: (a) A sale and repurchase transaction where the repurchase price is a fixed price or the sale price plus a lender’s return; (b) A securities lending agreement; (c) A sale of a financial asset together with a total return swap that transfers the market risk exposure back to the entity; (d) A sale of a financial asset together with a deep in-the-money put or call option (i.e., an option that is so far in the money that it is highly unlikely to go out of the money before expiry); and (e) A sale of short-term receivables in which the entity guarantees to compensate the transferee for credit losses that are likely to occur. IPSAS 29 APPLICATION GUIDANCE 1088
Page 1 and 2:
IPSAS 29—FINANCIAL INSTRUMENTS: R
Page 3 and 4:
FINANCIAL INSTRUMENTS: RECOGNITION
Page 5 and 6:
Introduction FINANCIAL INSTRUMENTS:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16: FINANCIAL INSTRUMENTS: RECOGNITION
Page 65: FINANCIAL INSTRUMENTS: RECOGNITION
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265:
show all

ipsas 29—financial instruments: recognition and measurement - IFAC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?