International GAAP 2021

Chapter 52Financial instruments: Derecognition

• 1 INTRODUCTION
  • 1.1 Off-balance sheet finance
• 2 DEVELOPMENT OF IFRS
  • 2.1 Definitions
  • 2.2 Scope
• 3 DERECOGNITION – FINANCIAL ASSETS
  • 3.1 Background
  • 3.2 Decision tree
    • 3.2.1 Importance of applying tests in sequence
  • 3.3 Derecognition principles, parts of assets and groups of assets
    • 3.3.1 Credit enhancement through transferor's waiver of right to future cash flows
    • 3.3.2 Derecognition of groups of financial assets
      • 3.3.2.A The IASB's view and the Interpretations Committee's tentative conclusions
      • 3.3.2.B What are ‘similar assets’?
    • 3.3.3 Transfer of asset (or part of asset) for only part of its life
    • 3.3.4 ‘Financial asset’ includes whole or part of a financial asset
  • 3.4 Have the contractual rights to cash flows from the asset expired?
    • 3.4.1 Renegotiation of the terms of an asset
    • 3.4.2 Interpretations Committee discussions on asset restructuring in the context of Greek government debt
    • 3.4.3 Interbank Offered Rate (IBOR) Reform
    • 3.4.4 Novation of contracts to intermediary counterparties
    • 3.4.5 Write-offs
  • 3.5 Has the entity ‘transferred’ the asset?
    • 3.5.1 Transfers of contractual rights to receive cash flows
      • 3.5.1.A Meaning of ‘transfers the contractual rights to receive the cash flows’
      • 3.5.1.B Transfers subject to conditions
    • 3.5.2 Retention of rights to receive cash flows subject to obligation to pay over to others (pass-through arrangement)
  • 3.6 Securitisations
    • 3.6.1 Recourse to originator
    • 3.6.2 Short-term loan facilities ...