IFRS 9Chapter 4Lesson 1
Derecognising a financial asset: the decision tree
Step 1 of 6Learning objectives
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A financial asset leaves the balance sheet if the rights to its cash flows have expired or if a transfer passes on substantially all the risks and rewards or, failing that, control; the difference with the consideration received goes to profit or loss.
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Learning objectives
- Apply the derecognition decision tree for a financial asset in order.
- Distinguish the expiry of the rights from their transfer.
- Assess the transfer of risks and rewards, with no numerical threshold.
- Calculate and record the gain or loss on derecognition.
- Recognise a pass-through transfer and the question of retained control.