Reclassification

Learning objectives

• Explain that the reclassification of financial assets gives rise to specific disclosures, the measurement being dealt with by IFRS 9.L3
• Identify the information to be gathered when a financial asset is reclassified.L3

Normative references

• IFRS 7 §12BWhen financial assets have been reclassified in accordance with IFRS 9 para. 4.4.1 in the current or a previous period, the entity discloses for each reclassification its date, a detailed explanation of the change in business model and a qualitative description of its effect, and the amount reclassified into and out of each category (supplemented by paras. 12C and 12D).

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

1 question

• Pelta SA reclassifies a portfolio of loans from one measurement category to another (case facts). Management asks where to find, on the one hand, the measurement rules for the reclassified asset and, on the other, the disclosures about the reclassification. Which answer is consistent with the split between IFRS 9 and IFRS 7?L3