IFRS 9Chapter 6Lesson 1
Classifying a financial liability: amortised cost by default and its exceptions
Step 1 of 5Learning objectives
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Financial liabilities are at amortised cost except for exceptions (FVTPL, transfers not derecognised, guarantees, below-market commitments); the fair value option puts the own credit risk portion in OCI; the liability-versus-equity distinction falls under IAS 32.
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Learning objectives
- State the default amortised cost rule for liabilities and its main exceptions.
- Describe the fair value option for a liability.
- Split the fair value change of a designated liability between OCI and profit or loss.
- Distinguish what falls under IAS 32 from what falls under IFRS 9.