CERTYNEX IFRS ACADEMY

On 30 December, a customer of Sigma SA orders the transfer that settles a trade receivable; the cash is credited to Sigma's bank account only on 2 January. Sigma wishes to recognise the cash from 31 December by invoking the regime for regular way purchases and sales of financial assets. Which analysis is consistent with IFRS 9?

The cash is recognised on 31 December, because the trade date regime also covers the settlement of a receivable by bank transfer.

This settlement is not a purchase or sale of a financial asset; the cash is not recognised before the receivable is derecognised.

Sigma chooses between the date of the transfer order and the date of the bank credit, as for a regular way purchase of listed securities.

The cash is recognised on the date of the transfer order, because Sigma has then become party to the banking transaction.