CERTYNEX IFRS ACADEMY

Pelta SA reclassifies a portfolio of loans from one measurement category to another (case facts). Management asks where to find, on the one hand, the measurement rules for the reclassified asset and, on the other, the disclosures about the reclassification. Which answer is consistent with the split between IFRS 9 and IFRS 7?

IFRS 7 also contains the measurement rules for the reclassified asset, since reclassification is a transaction covered by its disclosures.

The measurement of the reclassified asset falls under IFRS 9; IFRS 7 requires specific disclosures on the reclassification of financial assets.

IFRS 9 contains the measurement rules and the disclosures on reclassification, IFRS 7 being limited to credit risk disclosures.

Neither IFRS 9 nor IFRS 7 deals with the reclassification of financial assets, which is for the entity's freely defined accounting policy.