109This Standard supersedes IAS 39 Financial Instruments: Recognition and Measurement revised in October 2000.

109 This Standard supersedes IAS 39 Financial Instruments: Recognition and Measurement revised in October 2000.
110 This Standard and the accompanying Implementation Guidance supersede the Implementation Guidance issued by the IAS 39 Implementation Guidance Committee, established by the former IASC.

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[1] The report, ‘Reforming Major Interest Rate Benchmarks’, is available at https://www.fsb.org/wp-content/uploads/r\_140722.pdf.

[2] The same materiality considerations apply in this context as apply throughout Australian Accounting Standards.

[3] The Standard permits an entity to designate any amount of the available qualifying assets or liabilities, ie in this example any amount of assets between CU0 and CU100.

[4] CU30 ÷ (CU100 – CU40) = 50 per cent

[5] see paragraphs 77 and AG94

[6] see paragraph 75

[7] The same materiality considerations apply in this context as apply throughout Australian Accounting Standards.

[8] In this example principal cash flows have been scheduled into time periods but the related interest cash flows have been included when calculating the change in the fair value of the hedged item. Other methods of scheduling assets and liabilities are also possible. Also, in this example, monthly repricing time periods have been used. An entity may choose narrower or wider time periods.

[9] In this example monetary amounts are denominated in ‘currency units (CU)’.

[10] The example uses a swap as the hedging instrument. An entity may use forward rate agreements or other derivatives as hedging instruments.

[11] see paragraph IE8

[12] ie CU20,047,408 – CU20,000,000. See paragraph IE7.

[13] The amount realised on sale of the asset is the fair value of a prepayable asset, which is less than the fair value of the equivalent non-prepayable asset shown in paragraph IE7.

[14] CU47,408 × 40 per cent

[15] The entity could instead enter into an offsetting swap with a notional principal of CU12 million to adjust its position and designate as the hedging instrument all CU20 million of the existing swap and all CU12 million of the new offsetting swap.