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Derecognition of Financial Assets (IFRS 9) : Last Updated: 30 October 2020

Derecognition of financial assets under IFRS 9 involves removing a recognized financial asset from an entity's financial position, determining if it has been effectively 'sold' or if it represents financing against the asset. The criteria for derecognition are outlined in a decision tree that serves as a framework for understanding the process. Additional information is available regarding the derecognition of financial liabilities.

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28 views3 pages

Derecognition of Financial Assets (IFRS 9) : Last Updated: 30 October 2020

Derecognition of financial assets under IFRS 9 involves removing a recognized financial asset from an entity's financial position, determining if it has been effectively 'sold' or if it represents financing against the asset. The criteria for derecognition are outlined in a decision tree that serves as a framework for understanding the process. Additional information is available regarding the derecognition of financial liabilities.

Uploaded by

Nico Robin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Derecognition of Financial Assets (IFRS

9)
Last updated: 30 October 2020

Derecognition is the removal of a previously recognised financial asset from an entity’s


statement of financial position. In general, IFRS 9 criteria for derecognition of a
financial asset aim to answer the question whether an asset has been effectively ‘sold’
and should be derecognised or whether an entity obtained a kind of financing against
this asset and simply an additional financial liability should be recognised. See also
separate page on derecognition of financial liabilities.

Derecognition criteria for financial assets are summarised in the decision tree below.
This is a very useful framework that helps go through the discussion that follows.

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