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Accounting

Accounting. Prof. Riccardo Tiscini. IAS 39: Financial Instruments. Categories of Financial Assets. IAS 39: Financial Instruments. FINANCIAL ASSETS. Fair value/ Profit or loss. Held to maturity. Loans and Receivable. Available for sale. Linea Contabilità e Bilancio.

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Accounting

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  1. Accounting Prof. Riccardo Tiscini

  2. IAS 39: Financial Instruments Accounting

  3. Categories of Financial Assets IAS 39: Financial Instruments FINANCIAL ASSETS Fair value/ Profit or loss Held to maturity Loans and Receivable Available for sale Linea Contabilità e Bilancio

  4. IAS 39: Financial Instruments FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL) • It is classified as held for trading (principally for the purpose of selling it in the near term); • Upon initial recognition it is designed by the entity as at fair value Valuation at fair value with changes in income statement Accounting

  5. IAS 39: Financial Instruments HELD TO MATURITY (HTM) • Non derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention to hold to maturity; • An entity shall not classify any financial assets as held to maturity if the it has, during the current financial year or during the two preceding financial years, sold more than insignificant amount of HTM investments before maturity Valuation at amortised cost Accounting

  6. IAS 39: Financial Instruments LOANS AND RECEIVABLES (L&R) • Non derivative financial assets with fixed or determinable payments that are not quoted in an active market other than: • those that an entity intends to sell immediately or in the near term; • those that the entity upon initial recognition designates as available for sale. Valuation at amortised cost Accounting

  7. IAS 39: Financial Instruments AVAILABLE FOR SALE (AFS) • Non derivative financial assets that are designated as available for sale or are not classified as: • Loans and receivables; • Held to maturity investments; • Financial assets at FV through profit or loss. Valuation at FV with changes in equity Accounting

  8. Categories of Financial Liabilities IAS 39: Financial Instruments FINANCIAL LIABILITIES Held for trading Held to Maturity Linea Contabilità e Bilancio

  9. IAS 39: Financial Instruments HELD FOR TRADING Valuation at FV with changes in income statement Accounting

  10. IAS 39: Financial Instruments HELD TO MATURITY • Non derivative financial liabilities with fixed or determinable payments and fixed maturity that an entity has the positive intention to settle to maturity; Valuation at amortised cost Accounting

  11. IAS 39: Financial Instruments DURING THE FINANCIAL CRISIS: 2008 AFS L&R FVTPL HTM HTM AFS L&R Accounting

  12. IAS 39: Financial Instruments AMENDMENTS IAS 39 • Only 2 categories of financial instruments Valuation at amortised cost Valuation at FV Accounting

  13. IFRS 9: Financial Instruments (replacement of IAS 39) IFRS 9 • Project plan to replace IAS 39 • Classification and measurement (IFRS 9 was published in November 2009 with requirements for financial assets and liabilities) Phase 1 Phase 2 • Impairment methodology (document for impairment was published in January 2011. Comment and redeliberations are on-going Phase 3 • Hedge Accounting (document was published in December 2010. • Comment and Redeliberations are on-going Accounting

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