IFRS 9Chapter 8Lesson 1
Reclassification: only if the business model changes
Step 1 of 6Learning objectives
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Financial assets are reclassified only if the objective of the business model changes, a very infrequent event; reclassification is prospective from the reclassification date, and financial liabilities are not reclassified.
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Learning objectives
- State when a financial asset is reclassified.
- Distinguish a genuine business model change from a mere change of intention.
- Determine the reclassification date and prospective application.
- Record a reclassification in a given case and recognise that liabilities are not reclassified.