Comparatives and the classification overlay

Learning objectives

• Explain that the classification overlay option permits comparative information about financial assets to be presented as if the classification requirements of IFRS 9 had been applied.L3
• Assess whether the option is available to an entity whose dates of initial application are given.L4

Normative references

• IFRS 17 §C28AAn entity that first applies IFRS 17 and IFRS 9 at the same time may apply the classification overlay (paras. C28B to C28E) to a financial asset for which comparative information is not restated under IFRS 9, either because it elects not to restate or because the asset was derecognised during the comparative period; para. C33A extends it to a limited case for entities already applying IFRS 9 (December 2021 amendment).

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

1 question

• An entity that applies IFRS 17 and IFRS 9 at the same time may, for financial assets whose comparatives are not restated, present comparative information as if the classification and measurement requirements of IFRS 9 had been applied.L3