Date-stamp loading
Version date: 9 April 2024 - onwards
  Version 2 of 2    

Application to financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risk (paras. BC108-BC131)

[IFRS 9 Financial Instruments replaced IAS 39. IFRS 9 applies to all items that were previously within the scope of IAS 39.]

BC108 An entity that holds a group of financial assets and financial liabilities is exposed to market risks (ie interest rate risk, currency risk or other price risk) and to the credit risk of each of the counterparties. Financial institutions and similar entities that hold financial assets and financial liabilities often manage those instruments on the basis of the entity’s net exposure to a particular market risk (or risks) or to the credit risk of a particular counterparty.

BC109 The previous requirements in IFRSs and US GAAP for measuring the fair value of financial assets and financial liabilities that are managed in this way were expressed differently. Therefore, the boards concluded that it is important that IFRSs and US GAAP express the requirements for measuring the fair value of those financial instruments in the same way.

BC110 When applying IFRSs, e

Comparing proposed amendment...