CERTYNEX IFRS ACADEMY

Mu SA holds the whole of the single series of notes issued by a vehicle that holds loans with SPPI cash flows. It wonders whether it must apply the analysis of contractually linked instruments to these notes. Which answer applies?

No, but the note fails the SPPI test because the issuer is a vehicle.

No: a single-tranche structure is not a contractually linked instrument.

Yes: as soon as notes are issued by a vehicle, they are contractually linked instruments.

Yes, and the note fails the SPPI test because it is non-recourse.