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AASB 9 - Financial Instruments - December 2014
Modified financial assetsModified financial assets
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Modified financial assets
5.5.12 If the contractual cash flows on a financial asset have been renegotiated or modified and the financial asset was not derecognised, an entity shall assess whether there has been a significant increase in the credit risk of the financial instrument in accordance with paragraph 5.5.3 by comparing:
(a) the risk of a default occurring at the reporting date (based on the modified contractual terms); and
(b) the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms).