OGRIN0/GPT2-ias-28-ifrs-9 · Datasets at Hugging Face

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instrument to which the option is linked. A currency swap that requires an
initial exchange of different currencies of equal fair values meets the
definition because it has a zero initial net investment.
A regular way purchase or sale gives rise to a fixed price commitment between
trade date and settlement date that meets the definition of a derivative.
However, because of the short duration of the commitment it is not
recognised as a derivative financial instrument. Instead, this Standard
provides for special accounting for such regular way contracts (see paragraphs
3.1.2 and B3.1.3–B3.1.6).
The definition of a derivative refers to non -financial variables that are not
specific to a party to the contract. These include an index of earthquake losses
in a particular region and an index of temperatures in a particular city.
Non- financial variables specific to a party to the contract include the
occurrence or non -occurrence of a fire that damages or destroys an asset of a
party to the contract. A change in the fair value of a non -financial asset is
specific to the owner if the fair value reflects not only changes in market
prices for such assets (a financial variable) but also the condition of the
specific non -financial asset held (a non -financial variable). For example, if a
guarantee of the residual value of a specific car exposes the guarantor to the
risk of changes in the car’s physical condition, the change in that residual
value is specific to the owner of the car.
Financial assets and liabilities held for trading
Trading generally reflects active and frequent buying and selling, and
financial instruments held for trading generally are used with the objective of
generating a profit from short-term fluctuations in price or dealer’s margin.BA.2
BA.3
BA.4
BA.5
BA.6IFRS 9
© IFRS Foundation A539
Financial liabilities held for trading include:
(a) derivative liabilities that are not accounted for as hedging instruments;
(b) obligations to deliver financial assets borrowed by a short seller (ie an
entity that sells financial assets it has borrowed and does not yet own);
(c) financial liabilities that are incurred with an intention to repurchase
them in the near term (eg a quoted debt instrument that the issuer
may buy back in the near term depending on changes in its fair value);
and
(d) financial liabilities that are part of a portfolio of identified financial
instruments that are managed together and for which there is
evidence of a recent pattern of short-term profit-taking.
The fact that a liability is used to fund trading activities does not in itself
make that liability one that is held for trading.BA.7
BA.8IFRS 9
A540 © IFRS Foundation
Appendix C
Amendments to other Standards
This appendix describes the amendments to other Standards that the IASB made when it finalised
IFRS 9 (2014). An entity shall apply the amendments for annual periods beginning on or after
1 January 2018. If an entity applies IFRS 9 for an earlier period, these amendments shall be applied
for that earlier period.
* * * * *
The amendments contained in this appendix when this Standard was issued in 2014 have been
incorporated into the text of the relevant Standards included in this volume.IFRS 9
© IFRS Foundation A541
Approval by the Board of IFRS 9 issued in November 2009
International Financial Reporting Standard 9 Financial Instruments was approved for issue
by thirteen of the fifteen members of the International Accounting Standards Board.
Mr Leisenring and Ms McConnell dissented from the issue of the Standard. Their
dissenting opinions are set out after the Basis for Conclusions.
Sir David Tweedie Chairman
Stephen Cooper
Philippe Danjou
Jan Engström
Patrick Finnegan
Robert P Garnett
Gilbert Gélard
Amaro Luiz de Oliveira Gomes
Prabhakar Kalavacherla
James J Leisenring
Patricia McConnell
Warren J McGregor
John T Smith
Tatsumi Yamada
Wei-Guo ZhangIFRS 9
A542 © IFRS Foundation
Approval by the Board of the requirements added to IFRS 9 in
October 2010
The requirements added to International Financial Reporting Standard 9 Financial
Instruments in October 2010 were approved for issue by fourteen of the fifteen members of
the International Accounting Standards Board (IASB). Mr Scott abstained in view of his
recent appointment to the IASB.
Sir David Tweedie Chairman
Stephen Cooper
Philippe Danjou
Jan Engström
Patrick Finnegan
Amaro Luiz de Oliveira Gomes
Prabhakar Kalavacherla
Elke König
Patricia McConnell
Warren J McGregor
Paul Pacter
Darrel Scott
John T Smith
Tatsumi Yamada
Wei-Guo ZhangIFRS 9
© IFRS Foundation A543
Approval by the Board of Mandatory Effective Date of IFRS 9 and
Transition Disclosures (Amendments to IFRS 9 (2009), IFRS 9

instrument to which the option is linked. A currency swap that requires an

initial exchange of different currencies of equal fair values meets the

definition because it has a zero initial net investment.

A regular way purchase or sale gives rise to a fixed price commitment between

trade date and settlement date that meets the definition of a derivative.

However, because of the short duration of the commitment it is not

recognised as a derivative financial instrument. Instead, this Standard

provides for special accounting for such regular way contracts (see paragraphs

3.1.2 and B3.1.3–B3.1.6).

The definition of a derivative refers to non -financial variables that are not

specific to a party to the contract. These include an index of earthquake losses

in a particular region and an index of temperatures in a particular city.

Non- financial variables specific to a party to the contract include the

occurrence or non -occurrence of a fire that damages or destroys an asset of a

party to the contract. A change in the fair value of a non -financial asset is

specific to the owner if the fair value reflects not only changes in market

prices for such assets (a financial variable) but also the condition of the

specific non -financial asset held (a non -financial variable). For example, if a

guarantee of the residual value of a specific car exposes the guarantor to the

risk of changes in the car’s physical condition, the change in that residual

value is specific to the owner of the car.

Financial assets and liabilities held for trading

Trading generally reflects active and frequent buying and selling, and

financial instruments held for trading generally are used with the objective of

generating a profit from short-term fluctuations in price or dealer’s margin.BA.2

BA.3

BA.4

BA.5

BA.6IFRS 9

Financial liabilities held for trading include:

(a) derivative liabilities that are not accounted for as hedging instruments;

(b) obligations to deliver financial assets borrowed by a short seller (ie an

entity that sells financial assets it has borrowed and does not yet own);

(c) financial liabilities that are incurred with an intention to repurchase

them in the near term (eg a quoted debt instrument that the issuer

may buy back in the near term depending on changes in its fair value);

and

(d) financial liabilities that are part of a portfolio of identified financial

instruments that are managed together and for which there is

evidence of a recent pattern of short-term profit-taking.

The fact that a liability is used to fund trading activities does not in itself

make that liability one that is held for trading.BA.7

BA.8IFRS 9

A540 © IFRS Foundation

Appendix C

Amendments to other Standards

This appendix describes the amendments to other Standards that the IASB made when it finalised

IFRS 9 (2014). An entity shall apply the amendments for annual periods beginning on or after

1 January 2018. If an entity applies IFRS 9 for an earlier period, these amendments shall be applied

for that earlier period.

* * * * *

The amendments contained in this appendix when this Standard was issued in 2014 have been

incorporated into the text of the relevant Standards included in this volume.IFRS 9

Approval by the Board of IFRS 9 issued in November 2009

International Financial Reporting Standard 9 Financial Instruments was approved for issue

by thirteen of the fifteen members of the International Accounting Standards Board.

Mr Leisenring and Ms McConnell dissented from the issue of the Standard. Their

dissenting opinions are set out after the Basis for Conclusions.

Sir David Tweedie Chairman

Stephen Cooper

Philippe Danjou

Jan Engström

Patrick Finnegan

Robert P Garnett

Gilbert Gélard

Amaro Luiz de Oliveira Gomes

Prabhakar Kalavacherla

James J Leisenring

Patricia McConnell

Warren J McGregor

John T Smith

Tatsumi Yamada

Wei-Guo ZhangIFRS 9

Approval by the Board of the requirements added to IFRS 9 in

October 2010

The requirements added to International Financial Reporting Standard 9 Financial

Instruments in October 2010 were approved for issue by fourteen of the fifteen members of

the International Accounting Standards Board (IASB). Mr Scott abstained in view of his

recent appointment to the IASB.