IFRS 17Chapter 9Lesson 1
Modification and derecognition of the contract
Step 1 of 6Learning objectives
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A contract is derecognised when it is extinguished or when its modification, applied from inception, would have caused it to be treated differently; otherwise the modification affects only cash flow estimates.
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Learning objectives
- Explain that a modification that would have changed the scope or the separation at inception leads to derecognition and a new contract.
- Determine the treatment of a modification and of an extinguishment of a contract from the facts of a case.