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Version date: 1 January 2017 - onwards

Recognition and derecognition (paras. 14-42) (version for insurers)

This version of IAS 39 does not contain the amendments by IFRS 9 and can therefore be used by those insurers utilising the exemption effected by Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4).

See IAS 39: Financial Instruments: Recognition and Measurement as amended by IFRS 9

Initial recognition

14 An entity shall recognise a financial asset or a financial liability in its statement of financial position when, and only when, the entity becomes a party to the contractual provisions of the instrument. (See paragraph 38 with respect to regular way purchases of financial assets.)

Derecognition of a financial asset

15 In consolidated financial statements, paragraphs 16-23 and Appendix A paragraphs AG34-AG52 are applied at a consolidated level. Hence, an entity first consolidates all subsidiaries in accordance with IFRS 10 and then applies paragraphs 16-23 and Appendix A paragraphs AG34-AG52 to the resulting group.