International GAAP 2020

Chapter 49Financial instruments: Recognition and initial measurement

• 1 INTRODUCTION
• 2 RECOGNITION
  • 2.1 General requirements
    • 2.1.1 Receivables and payables
    • 2.1.2 Firm commitments to purchase or sell goods or services
    • 2.1.3 Forward contracts
    • 2.1.4 Option contracts
    • 2.1.5 Planned future transactions (forecast transactions)
    • 2.1.6 Transfers of financial assets not qualifying for derecognition by transferor – Impact on recognition
    • 2.1.7 Cash collateral
    • 2.1.8 Principal versus agent
  • 2.2 ‘Regular way’ transactions
    • 2.2.1 Financial assets: general requirements
      • 2.2.1.A No established market
      • 2.2.1.B Contracts not settled according to marketplace convention: derivatives
      • 2.2.1.C Multiple active markets: settlement provisions
      • 2.2.1.D Exercise of a derivative
    • 2.2.2 Financial liabilities
    • 2.2.3 Trade date accounting
    • 2.2.4 Settlement date accounting
    • 2.2.5 Illustrative examples
      • 2.2.5.A Exchanges of non-cash financial assets
• 3 INITIAL MEASUREMENT
  • 3.1 General requirements
  • 3.2 Short‑term receivables and payables and trade receivables
  • 3.3 Initial fair value, transaction price and ‘day 1’ profits
    • 3.3.1 Interest-free and low-interest long-term loans
    • 3.3.2 Measurement of financial instruments following modification of contractual terms that leads to initial recognition of a new instrument
    • 3.3.3 Financial guarantee contracts and off-market loan commitments
    • 3.3.4 Loans and receivables acquired in a business combination
    • 3.3.5 Acquisition of a group of assets that does not constitute a business ...