Impairment and Uncollectibility of FinanImpairment and Uncollectibility of Financial Assets Measured at Amortised Cost

Impairment and Uncollectibility of Financial Assets Measured at Amortised Cost

58 An entity shall assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets measured at amortised cost is impaired. If any such evidence exists, the entity shall apply paragraph 63 (for financial assets carried at amortised cost), paragraph 66 (for financial assets carried at cost) or paragraph 67 (for available for sale financial assets) to determine the amount of any impairment loss.

63 If there is objective evidence that an impairment loss on financial assets measured loans and receivables or held to maturity investments carried at amortised cost has been incurred, the amount of the loss is measured as …

42 Paragraph 79 is deleted and paragraphs 88(d), 89(b), 90 and 96(c) are amended as follows:

88 A hedging relationship qualifies for hedge accounting under paragraphs 89-102 if, and only if, all of the following conditions are met.

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(d) The effectiveness of the hedge can be reliably measured, that is, the fair value or cash flows of the hedged item that are attributable to the hedged risk and the fair value of the hedging instrument can be reliably measured (see paragraphs 46 and 47(a) and Appendix A paragraphs AG80 and AG81 for guidance on determining fair value).

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89 If a fair value hedge meets the conditions in paragraph 88 during the period, it shall be accounted for as follows:

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(b) the gain or loss on the hedged item attributable to the hedged risk shall adjust the carrying amount of the hedged item and be recognised in profit or loss. This applies if the hedged item is otherwise measured at cost. Recognition of the gain or loss attributable to the hedged risk in profit or loss applies if the hedged item is an available for sale financial asset.

90 If only particular risks attributable to a hedged item are hedged, recognised changes in the fair value of the hedged item unrelated to the hedged risk are recognised as set out in paragraph 55 of this Standard and paragraph 5.4.1 of AASB 9.

96 …

(c) if an entity’s documented risk management strategy for a particular hedging relationship excludes from the assessment of hedge effectiveness a specific component of the gain or loss or related cash flows on the hedging instrument (see paragraphs 74, 75 and 88(a)), that excluded component of gain or loss is recognised in accordance with paragraph 55 of this Standard and paragraph 5.4.1 of AASB 9.

43 Paragraphs 103L and 103M are added as follows:

103L AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, issued in December 2009, amended paragraphs 1, 9-11A, 13, 14, 26, 27(b), 31, 33, 34, 43, 44, 47, 48, 50, 50A, 53-58, 63, 88(d), 89(b), 90, 96(c), AG3, AG3A, AG4B-AG4E, AG4H, AG4I, AG8, AG29, AG31-AG35, AG50, AG53, AG56, AG64, AG76A, AG80, AG81, AG83, AG84, AG95, AG96 and AG114(a) and deleted paragraphs 45, 46, 50B-52, 61, 66-70, 79, AG16-AG26, AG30(b), AG30(f) and AG65-AG68. An entity shall apply those amendments when it applies AASB 9.