Transition related to the limited amendments to the requirements for classifying and measuring financial assets
Assessment of an asset’s contractual cash flow characteristics
BC7.53 In accordance with the existing transition provisions in IFRS 9, when IFRS 9 is initially applied, the assessment of an asset’s contractual cash flow characteristics is based on the facts and circumstances that existed at the initial recognition of the financial asset, and the resulting classification is applied retrospectively.
BC7.54 The 2012 Limited Amendments Exposure Draft introduced a notion of a modified economic relationship between principal and the consideration for time value of money and credit risk. In that Exposure Draft, the IASB noted that assessing the contractual cash flow characteristics in accordance with the requirements issued in IFRS 9 (2009) requires judgement, but acknowledged that the proposed clarification introduces a greater degree of judgement and presents a greater risk th
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