IFRS 9 Financial Instruments Knowledge Center
Explore our verified library of IFRS 9 Financial Instruments transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
How to record a loan at amortized cost
Initial recognition of a loan given to a third party where the business model is to collect contractual cash flows consisting solely of payments of principal and interest.
How to account for expected credit losses
Recognition of a 12-month expected credit loss (ECL) for a financial instrument in Stage 1 where there has been no significant increase in credit risk since initial recognition.
How to record FVTPL investment gains
Recording the fair value increase for a financial asset held for trading or where the fair value option has been elected.
How to record FVTOCI equity fair value
Recognizing the fair value change of an equity investment for which the entity has made an irrevocable election to present changes in OCI.
How to amortize bond transaction costs
Recognition of interest expense for a bond liability including the amortization of capitalized transaction costs using the effective interest method.
How to reclassify FVTPL to amortized cost
Records the transfer of a financial asset from fair value through profit or loss to amortized cost following a change in business model.
How to derecognize financial asset via sale
Records the disposal of a debt instrument held at amortized cost and the resulting gain or loss.
How to reverse impairment on amortized cost
Records the reduction in the allowance for expected credit losses when credit risk improves.
How to record interest income via EIR
Accrues interest income on a financial asset using the effective interest rate method.
How to recognize financial guarantee liability
Initial recognition of a financial guarantee contract issued at fair value.
How to record fair value hedge adjustment
Recording the fair value changes of a hedged item and the hedging instrument in a fair value hedge relationship.
How to record cash flow hedge reserve
Accounting for the effective portion of a cash flow hedge in Other Comprehensive Income (OCI).
How to record asset modification loss
Recording the adjustment when the terms of a financial asset are modified without resulting in derecognition.
How to record debt extinguishment
Accounting for the derecognition of a financial liability when it is extinguished through a substantial modification.
How to reclassify to FVTOCI
Reclassifying a financial asset from amortized cost to fair value through other comprehensive income.
How to reclassify amortized cost to FVTPL
Records the reclassification of a financial asset from amortized cost to FVTPL due to a change in business model, recognizing any difference in profit or loss.
How to separate embedded derivative from host
Records the initial recognition of a hybrid contract where an embedded derivative is separated from a financial liability host.
How to record day one loss on low interest loan
Records the initial measurement of a loan granted at below-market interest rates, resulting in a day one loss.
How to record cash flow hedge ineffectiveness
Records the portion of a change in the fair value of a hedging instrument that does not effectively offset the change in the hedged item.
How to record write-off of financial asset
Records the removal of a financial asset from the books when there is no reasonable expectation of recovering the contractual cash flows.
How to record Stage 3 interest income
Recording interest income for credit-impaired financial assets using the effective interest rate applied to the net carrying amount.
How to record FVTPL transaction costs
Accounting for transaction costs incurred during the acquisition of financial instruments measured at fair value through profit or loss.
How to record net investment hedge
Recording the effective portion of gains or losses on a hedging instrument used for a net investment in a foreign operation.
How to record simplified ECL on receivables
Recording the expected credit loss (ECL) for trade receivables using the simplified approach and a provision matrix.
How to record own credit risk in OCI
Recognizing the change in fair value of a financial liability designated at FVTPL that is attributable to changes in the entity's own credit risk.
How to record POCI asset recognition
Initial recognition of a Purchased or Originated Credit-Impaired (POCI) financial asset at fair value.
How to recycle FVTOCI debt gains to profit
Recording the recycling of cumulative fair value gains from OCI to profit or loss upon the sale of a debt instrument.
How to record cost of hedging reserve
Accounting for the change in fair value of the excluded components of a derivative (e.g., forward points) in OCI.
How to record FVTOCI to amortized cost reclass
Reclassifying a financial asset from FVTOCI to Amortized Cost due to a change in business model.
How to record loan commitment ECL provision
Recognizing the expected credit loss (ECL) on off-balance sheet loan commitments.
How to record loan liability at amortized cost
Initial recognition of a financial liability measured at amortized cost, including the deduction of transaction costs from the principal amount.
How to record basis adjustment for inventory hedge
Reclassifying accumulated gains or losses from the cash flow hedge reserve to the initial cost of a non-financial asset upon recognition.
How to record Stage 1 to Stage 2 ECL migration
Recognizing the incremental increase in loss allowance when a financial asset experiences a significant increase in credit risk (SICR).
How to record FVTOCI debt premium amortization
Accounting for the amortization of the purchase premium on a debt instrument held at FVTOCI using the effective interest rate method.
How to record debt-for-equity-swap
Recording the extinguishment of a financial liability through the issuance of equity instruments in accordance with IFRIC 19 and IFRS 9.
How to record Stage 2 to Stage 3 ECL migration
Records the increase in loss allowance when a financial asset transitions from having a significant increase in credit risk (Stage 2) to being credit-impaired (Stage 3).
How to record ECL using a provision matrix
Records the expected credit loss for trade receivables using the simplified approach provision matrix based on historical loss rates.
How to record issuance of a convertible bond
Initial recognition of a compound financial instrument by splitting the proceeds between the liability and equity components.
How to record liability designated at FVTPL
Accounting for a financial liability that has been irrevocably designated at fair value through profit or loss at initial recognition.
How to record FVTOCI equity derecognition
Records the transfer of accumulated gains/losses within equity upon the sale of an equity instrument designated at FVTOCI.
How to record cure of Stage 3 financial asset
Accounting for the reversal of impairment when a financial asset improves from Stage 3 (credit-impaired) back to Stage 2.
How to record puttable instrument liability
Recognition of a financial instrument that gives the holder the right to put the instrument back to the issuer for cash.
How to record trade date asset acquisition
Recording the purchase of a financial asset at the date the entity commits to purchase it, before settlement occurs.
How to record dividend on FVTOCI equity
Recognition of dividend income from equity investments that have been irrevocably designated at FVTOCI.
How to record repurchase agreement liability
Accounting for a sale and repurchase agreement (Repo) as a secured borrowing rather than a sale.
How to record settlement of a forward contract
Records the final cash settlement of a derivative forward contract that was previously measured at fair value through profit or loss (FVTPL).
How to record credit-adjusted interest on POCI asset
Recognition of interest income on Purchased or Originated Credit-Impaired (POCI) assets using the credit-adjusted effective interest rate (EIR).
How to record settlement date asset acquisition
Records the acquisition of a financial asset using settlement date accounting rather than trade date accounting.
How to record modification of a financial liability
Records the adjustment to the carrying amount of a financial liability when terms are modified but not substantially enough to result in derecognition.
How to record fair value hedge termination
Records the cessation of fair value hedge accounting and the subsequent treatment of the cumulative hedge adjustment.
How to record FX translation of FVTOCI debt
Recognition of foreign exchange gains or losses on the amortized cost component of a debt instrument measured at FVTOCI.
How to record amortization of time value in OCI
Amortization of the initial time value of an option when it is designated as a hedging instrument and the 'cost of hedging' approach is applied.
How to record recovery of written-off debt
Accounting for cash received from a customer after the financial asset has been previously written off from the books.
How to record rebalancing of hedge ratio
Adjusting the quantities of the hedging instrument or the hedged item to maintain a hedge ratio that complies with the risk management objective.
How to record derecognition via asset swap
Accounting for the exchange of a financial asset for another financial asset where the risks and rewards are transferred.
How to record initial derivative transaction costs
Accounting for transaction costs incurred when entering into a derivative contract, which are classified as FVTPL.
How to record hedge of a firm commitment
Recording the change in fair value of a firm commitment that is designated as a hedged item in a fair value hedge.
How to record retained interest in asset transfer
Accounting for the transfer of a portion of a financial asset while retaining a specific interest, such as a servicing right.
How to record reclass of debt FVTOCI to FVTPL
Reclassifying a debt instrument from FVTOCI to FVTPL due to a change in the entity's business model.
How to record initial recognition of loan at FVTPL
Initial recognition of a loan asset irrevocably designated at FVTPL to eliminate an accounting mismatch.
How to record cash flow hedge of highly probable sale
Records the effective portion of changes in the fair value of a hedging instrument used to hedge a forecast sale transaction.
How to record impairment of FVTOCI debt assets
Records the expected credit loss (ECL) for a debt instrument measured at fair value through OCI without reducing the asset's carrying amount.
How to record a servicing asset in derecognition
Recognizes a servicing asset when a financial asset is derecognized but the entity retains the right to service the asset for a fee.
How to record partial derecognition of financial asset
Records the transfer of a specific identifiable portion of a financial asset that meets the derecognition criteria of IFRS 9.
How to record reclass of debt FVTPL to FVTOCI
Records the reclassification of a debt instrument from FVTPL to FVTOCI following a change in the entity's business model.
How to record currency swap fair value
Recording the periodic fair value adjustment of a currency swap derivative not designated as a hedge.
How to record interest rate cap premium
Recognition of the initial premium paid to acquire an interest rate cap derivative.
How to record guarantee liability amortization
Amortizing a financial guarantee liability over the period of risk exposure.
How to record credit-linked note recognition
Initial recognition of a credit-linked note (CLN) which contains an embedded credit derivative.
How to record purchase of credit default swap
Recording the initial premium payment for a credit default swap (CDS) used for credit risk management.
How to record Stage 2 to Stage 1 ECL migration
Records the reversal of expected credit losses when a financial asset's credit risk significantly improves, moving from lifetime ECL to 12-month ECL.
How to record collateralized borrowing liability
Accounts for a transfer of financial assets that does not qualify for derecognition, resulting in a secured borrowing liability.
How to record interest rate floor fair value
Records the periodic fair value adjustment of a stand-alone interest rate floor derivative asset.
How to record total return swap fair value
Records the gain or loss on a total return swap (TRS) derivative at the reporting date.
How to record negative interest on cash balances
Records the expense arising from negative interest rates applied to bank deposits or financial assets.
How to record hedge of forecast inventory purchase
Records the effective portion of changes in the fair value of a derivative designated as a cash flow hedge for a forecasted purchase of non-financial assets.
How to record fair value of a commodity swap
Initial or subsequent measurement of a commodity swap at fair value through profit or loss (FVTPL) when not designated in a hedge relationship.
How to record fair value of written call option
Records the fair value adjustment of a written call option, which is classified as a financial liability under IFRS 9.
How to record equity index swap fair value
Records the periodic fair value adjustment for a swap where payments are based on the performance of an equity index.
How to record interest rate swap periodic payment
Records the net cash settlement of an interest rate swap on its periodic reset date.
How to record futures contract fair value gain
Records the unrealized mark-to-market gain on a futures contract held for trading purposes.
How to record factoring without recourse
Records the derecognition of trade receivables when risks and rewards are fully transferred to a factor.
How to record convertible debt interest accretion
Records the interest expense on the liability component of a convertible bond using the effective interest method.
How to record purchased call option on equity
Records the initial cost of purchasing a call option on a third-party equity instrument.
How to record impairment on lease receivables
Records the Expected Credit Loss (ECL) on lease receivables using the simplified approach allowed under IFRS 9.
How to record factoring with recourse
Records the receipt of cash from a factoring arrangement where the entity retains credit risk, preventing derecognition of the receivable.
How to record impairment on contract assets
Records the expected credit loss (ECL) on contract assets recognized under IFRS 15, which are within the scope of IFRS 9 impairment.
How to record transaction costs for FVTOCI debt
Records the initial recognition of a debt instrument at FVTOCI, where transaction costs are capitalized into the carrying amount.
How to record FX gain on amortized cost debt
Records the foreign exchange translation gain on a monetary financial asset measured at amortized cost under IAS 21 and IFRS 9.
How to record credit spread swap fair value
Records the mark-to-market adjustment for a credit spread swap derivative held for trading or risk management.
How to record a loan modification gain
Records the gain resulting from a non-substantial modification of a financial asset's contractual cash flows under IFRS 9.
How to record ECL on intercompany loans
Recognition of expected credit losses on loans provided to subsidiaries or affiliates in separate financial statements.
How to record reverse repo asset recognition
Recording a reverse repurchase agreement where cash is provided in exchange for collateral, treated as a secured loan.
How to record fair value of an equity warrant
Records the fair value adjustment for a warrant held as a financial asset, typically classified as FVTPL.
How to record cash collateral for derivatives
Records the movement of cash posted as collateral (margin) to a counterparty or clearing house for derivative contracts.
How to record IFRS 9 initial adoption impact
Records the transition adjustment to retained earnings upon the first-time adoption of the IFRS 9 expected credit loss model.
How to record fair value of a basis swap
Records the periodic fair value adjustment for a basis swap where two floating interest rates are exchanged.
How to record ECL on short-term bank deposits
Recognizes expected credit losses on cash equivalents and bank deposits, even if they have low credit risk.
How to record hedge of a forecast debt issuance
Records the effective portion of a cash flow hedge for interest rate risk associated with a highly probable future loan issuance.
How to record settlement of a credit default swap
Records the cash settlement received or paid upon the occurrence of a credit event for a Credit Default Swap (CDS).
How to recycle own credit risk on derecognition
Records the transfer of cumulative gains or losses in OCI related to own credit risk to retained earnings upon the derecognition of a financial liability designated at FVTPL.
How to record modification catch-up adjustment
Records the gain or loss arising from the modification of contractual cash flows of a financial asset that does not lead to derecognition.
How to record ECL on financial guarantees
Records the expected credit loss provision for a financial guarantee contract issued by an entity.
How to recycle cash flow hedge reserve to P&L
Records the reclassification of the effective portion of a cash flow hedge from the OCI reserve to profit or loss when the hedged item impacts P&L.
How to record employee low-interest loan
Records the initial recognition of a loan to an employee at a below-market interest rate, recognizing the fair value discount as a benefit expense.
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