Classification and Measurement: Limited Amendments to IFRS 9

CLASSIFICATION AND MEASUREMENT: LIMITED AMENDMENTS TO IFRS 9 (PROPOSED AMENDMENTS TO IFRS 9 (2010))
Appendix C
Amendments to other IFRSs
Except where otherwise stated, an entity shall apply the amendments outlined in this [draft]
appendix when it applies Classification and Measurement: Limited Amendments to IFRS 9
(Proposed amendments to IFRS 9 (2010)) issued on [date to be inserted after exposure].
IFRS 1 First-time Adoption of International Financial Reporting
Standards
Paragraphs B4 and B8 are amended. New text is underlined.
Hedge accounting
B4 As required by IFRS 9, at the date of transition to IFRSs an entity shall:
(a) measure all derivatives at fair value through profit or loss; and
(b) eliminate all deferred losses and gains arising on derivatives that were
reported in accordance with previous GAAP as if they were assets or
liabilities.
Classification and measurement of financial assets
B8 An entity shall assess whether a financial asset meets the conditions in
paragraphs 4.1.2 or 4.1.2A of IFRS 9 on the basis of the facts and circumstances
that exist at the date of transition to IFRSs.
IFRS 3 Business Combinations
Paragraph 16 is amended. New text is underlined.
Recognising and measuring the identifiable assets
acquired, the liabilities assumed and any non-controlling
interest in the acquiree
Recognition principle
Classifying or designating identifiable assets acquired and liabilities
assumed in a business combination
...
16 In some situations, IFRSs provide for different accounting depending on how an
entity classifies or designates a particular asset or liability. Examples of
classifications or designations that the acquirer shall make on the basis of the
pertinent conditions as they exist at the acquisition date include but are not
limited to:
(a) classification of particular financial assets and liabilities as measured at
fair value through profit or loss, or at amortised cost, as financial assets
mandatorily measured at fair value through other comprehensive
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� IFRS Foundation