International GAAP 2020

Chapter 48Financial instruments: Classification

• 1 INTRODUCTION
• 2 CLASSIFYING FINANCIAL ASSETS: AN OVERVIEW
  • 2.1 Debt instruments
  • 2.2 Equity instruments and derivatives
• 3 CLASSIFYING FINANCIAL LIABILITIES
• 4 FINANCIAL ASSETS AND FINANCIAL LIABILITIES HELD FOR TRADING
• 5 FINANCIAL ASSETS: THE ‘BUSINESS MODEL’ ASSESSMENT
  • 5.1 The level at which the business model assessment is applied
  • 5.2 Hold to collect contractual cash flows
    • 5.2.1 Impact of sales on the assessment
    • 5.2.2 Transferred financial assets that are not derecognised
  • 5.3 Hold to collect contractual cash flows and selling financial assets
  • 5.4 Other business models
  • 5.5 Consolidated and subsidiary accounts
  • 5.6 Applying the business model test in practice
• 6 CHARACTERISTICS OF THE CONTRACTUAL CASH FLOWS OF THE INSTRUMENT
  • 6.1 The meaning of ‘principal’
  • 6.2 The meaning of ‘interest’
  • 6.3 Contractual features that normally pass the test
    • 6.3.1 Conventional subordination features
    • 6.3.2 Full recourse loans secured by collateral
    • 6.3.3 Bonds with a capped or floored interest rate
    • 6.3.4 Lender has discretion to change the interest rate
    • 6.3.5 Unleveraged inflation-linked bonds
    • 6.3.6 Features which compensate the lender for changes in tax or other related costs
  • 6.4 Contractual features that may affect the classification
    • 6.4.1 De minimis and non-genuine features
      • 6.4.1.A De minimis features
      • 6.4.1.B Non-genuine features
    • 6.4.2 Contractual features that modify the consideration for the time value of money
    • 6.4.3 Regulated interest ...