Classification and Measurement: Limited Amendments to IFRS 9

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CLASSIFICATION AND MEASUREMENT: LIMITED AMENDMENTS TO IFRS 9 (PROPOSED AMENDMENTS TO IFRS 9 (2010)) measured at into the fair value through profit or loss measurement category, its fair value is determined at the reclassification date. Any gain or loss arising from a difference between the previous carrying amount and fair value is recognised in profit or loss. 5.6.3 If, in accordance with paragraph 4.4.1, an entity reclassifies a financial asset out of the fair value through profit or loss measurement category and so that it is measured at into the amortised cost measurement category, its fair value at the reclassification date becomes its new carrying amount. Paragraphs 5.6.4–5.6.7 are added. 5.6.4 If, in accordance with paragraph 4.4.1, an entity reclassifies a financial asset out of the amortised cost measurement category and into the fair value through other comprehensive income measurement category, its fair value is determined at the reclassification date. Any gain or loss arising from a difference between the previous carrying amount and fair value is recognised in other comprehensive income. The effective interest rate is not adjusted as a result of the reclassification. 5.6.5 If, in accordance with paragraph 4.4.1, an entity reclassifies a financial asset out of the fair value through other comprehensive income measurement category and into the amortised cost measurement category, the financial asset is reclassified at its fair value at the reclassification date. However, the cumulative gain or loss previously recognised in other comprehensive income is removed from equity and adjusted against the fair value of the financial asset at the reclassification date. This adjustment affects other comprehensive income but does not affect profit or loss and is therefore not a reclassification adjustment (see IAS 1 Presentation of Financial Statements). The effective interest rate is not adjusted as a result of the reclassification. 5.6.6 If, in accordance with paragraph 4.4.1, an entity reclassifies a financial asset out of the fair value through profit or loss measurement category and into the fair value through other comprehensive income measurement category, its fair value at the reclassification date becomes its new carrying amount. 5.6.7 If, in accordance with paragraph 4.4.1, an entity reclassifies a financial asset out of the fair value through other comprehensive income measurement category and into the fair value through profit or loss measurement category, its fair value at the reclassification date becomes its new carrying amount. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment (see IAS 1) at the reclassification date. 11 � IFRS Foundation
Paragraphs 5.7.1 and 5.7.4 are amended. Paragraph 5.7.1A is added. New text is underlined and deleted text is struck through. 5.7 Gains and losses 5.7.1 A gain or loss on a financial asset or financial liability that is measured at fair value and is not part of a hedging relationship (see paragraphs 89–102 of IAS 39) 6 shall be recognised in profit or loss unless: (a) it is part of a hedging relationship (see paragraphs 89–102 of IAS 39); [deleted] (b) it is an investment in an equity instrument and the entity has elected to present gains and losses on that investment in other comprehensive income in accordance with paragraph 5.7.5; or (c) it is a financial liability designated as at fair value through profit or loss and the entity is required to present the effects of changes in the liability’s credit risk in other comprehensive income in accordance with paragraph 5.7.7; or. (d) it is a financial asset classified at fair value through other comprehensive income in accordance with paragraph 4.1.2A and the entity is required to recognise particular changes in fair value in other comprehensive income in accordance with paragraph 5.7.1A. 5.7.1A A gain or loss on a financial asset measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A shall be recognised in other comprehensive income, except for impairment losses (see paragraph 5.2.2) and foreign exchange gains and losses (see paragraphs B5.7.2–B5.7.3), until the financial asset is derecognised or reclassified out of the fair value through other comprehensive income measurement category (see paragraph 4.4.1). When the financial asset is derecognised the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment (see IAS 1). If the financial asset is reclassified out of the fair value through other comprehensive income measurement category the entity shall account for the cumulative gain or loss previously recognised in other comprehensive income in accordance with paragraphs 5.6.5 and 5.6.7. Interest calculated using the effective interest method (see paragraphs 9 and AG5–AG8 of IAS 39 7 ) is recognised in profit or loss (see IAS 18). ... EXPOSURE DRAFT–NOVEMBER 2012 6 The references will ultimately be updated be updated to reflect [draft] Chapter 6 Hedge Accounting. 7 References to the requirements in IAS 39 will be replaced by references to the relevant paragraphs in this Standard when this Standard is completed. � IFRS Foundation 12
Page 1 and 2: November 2012 Exposure Draft ED/201
Page 3 and 4: Exposure Draft ED/2012/4 Classifica
Page 5 and 6: Introduction IN1 The International
Page 7 and 8: Question 3 Do you believe that this
Page 9 and 10: attributable to changes in the cred
Page 11: EXPOSURE DRAFT-NOVEMBER 2012 4.1.4
Page 15 and 16: income of gains or losses attributa
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Page 21 and 22: ...continued Example Analysis Examp
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Page 27 and 28: contractual cash flows could not be
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Page 31 and 32: not meet the conditions in paragrap
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Page 35 and 36: Paragraph B7.2.1 is amended. New te
Page 37 and 38: income or equity investments design
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EXPOSURE DRAFT-NOVEMBER 2012 BC69 T
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EXPOSURE DRAFT-NOVEMBER 2012 apply
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(c) assess the contractual cash flo
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EXPOSURE DRAFT-NOVEMBER 2012 BC93 T
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credit risk. However, given the con
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BC111 Lastly, the IASB noted that I
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Bifurcation of embedded features in
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Comparability of financial informat
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The business model EXPOSURE DRAFT-N
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EXPOSURE DRAFT-NOVEMBER 2012 normal
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EXPOSURE DRAFT-NOVEMBER 2012 portio
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EXPOSURE DRAFT-NOVEMBER 2012 disclo
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EXPOSURE DRAFT-NOVEMBER 2012 AV11 M
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...continued EXPOSURE DRAFT-NOVEMBE
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...continued Reconciliation of stat
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EXPOSURE DRAFT-NOVEMBER 2012 measur
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Classification and Measurement: Limited Amendments to IFRS 9

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