CERTYNEX IFRS ACADEMY

Which situations constitute a transfer of a financial asset in the derecognition analysis? Several answers are possible.

The entity keeps the rights but undertakes to pay the cash flows to recipients, under an arrangement meeting the pass-through conditions.

The entity collects the cash flows of the asset, with no obligation to pass them on to anyone.

The debtor repays the asset at maturity, which extinguishes the contractual rights.

The entity changes the business model for managing the asset and reclassifies it.

The entity transfers to a third party the contractual rights to the cash flows of the asset.