51In Appendix A, paragraphs AG4B-AG4K, AG9-AG12A and AG14-AG15 are deleted and paragraph AG8 is amended to read as follows:

51 In Appendix A, paragraphs AG4B-AG4K, AG9-AG12A and AG14-AG15 are deleted and paragraph AG8 is amended to read as follows:

AG8 If an entity revises its estimates of payments or receipts, the entity shall adjust the carrying amount of the financial asset or financial liability (or group of financial instruments) to reflect actual and revised estimated cash flows. The entity recalculates the carrying amount by computing the present value of estimated future cash flows at the financial instrument’s original effective interest rate or, when applicable, the revised effective interest rate calculated in accordance with paragraph 92. The adjustment is recognised in profit or loss as income or expense.

52 In Appendix A, paragraphs AG27-AG83 are deleted.

53 In Appendix A, the heading ‘Impairment and uncollectibility of financial assets (paragraphs 58-70)’ above paragraph AG84 and paragraph AG84 are amended to read as follows:

Impairment and uncollectibility of finan Impairment and uncollectibility of financial assets measured at amortised cost (paragraphs 58-65)

Impairment and uncollectibility of financial assets measured at amortised cost (paragraphs 58-65)

AG84 Impairment of a financial asset measured at amortised cost is measured using the financial instrument’s original effective interest rate because discounting at the current market rate of interest would, in effect, impose fair value measurement on financial assets that are otherwise measured at amortised cost. If the terms of a financial asset measured at amortised cost are renegotiated or otherwise modified because of financial difficulties of the borrower or issuer, impairment is measured using the original effective interest rate before the modification of terms. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. If a financial asset measured at amortised cost has a variable interest rate, the discount rate for measuring any impairment loss under paragraph 63 is the current effective interest rate(s) determined under the contract. As a practical expedient, a creditor may measure impairment of a financial asset measured at amortised cost on the basis of an instrument’s fair value using an observable market price. The calculation of the present value of the estimated future cash flows of a collateralised financial asset reflects the cash flows that may result from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is probable.

54 In Appendix A, paragraph AG96 and the first footnote to paragraph AG118(b) are deleted and paragraphs AG95, AG114(a) and AG118(b) are amended to read as follows:

AG95 A financial asset measured at amortised cost may be designated as a hedging instrument in a hedge of foreign currency risk.