IFRS 9: classification and day-one difference

Learning objectives

• Distinguish what IFRS 9 determines (classification, initial difference) from what IFRS 13 provides (measurement method).L4
• Calculate the fair value of an instrument by discounting and the difference from the transaction price.L4

Normative references

• IFRS 13 §52The exception applies to contracts within the scope of IFRS 9 (or IAS 39), regardless of whether they meet the definitions of financial assets or financial liabilities in IAS 32.
• IFRS 13 §60If fair value is required at initial recognition and differs from the transaction price, the difference is recognised in profit or loss unless another Standard specifies otherwise.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

4 questions

• Cobriel enters into a gas purchase contract within the scope of IFRS 9 that does not meet the IAS 32 definitions of a financial asset or financial liability (case data). Which element is decisive in deciding whether this contract falls within the scope of the exception for measuring on a net basis?L4
• An institution acquires an instrument that will pay it a single cash flow of {expected_flow} in {term}. The market rate observed for comparable cash flows is {market_rate}. It pays {price_paid}. Fair value is required at initial recognition (case data). Compute the difference between the fair value obtained by discounting and the transaction price.L4
• A group's methodology note describes IFRS 13's role for its financial instruments. Which sentence is wrong?L4
• A bank acquires a loan for 960; the applicable standard requires fair value at initial recognition, which comes out at 1,000 by discounting based only on observable market data (case data). In that case, the applicable standard calls for no different treatment of the difference of 40 (case data). What treatment does it adopt?L4