Transferred assets not fully derecognised

Learning objectives

• Explain the disclosures about transferred assets that are not derecognised in their entirety and the associated liabilities.L3
• Calculate the net position between the transferred assets and the associated liabilities when recourse is limited to the transferred assets.L3

Normative references

• IFRS 7 §42DFor each class of transferred assets not derecognised in their entirety, the entity discloses the nature of the assets, the risks and rewards of ownership to which it remains exposed, the relationship between those assets and the associated liabilities (including restrictions on their use), a table of the fair values of the assets and associated liabilities and the net position when the counterparties have recourse only to the transferred assets, and the carrying amounts of the assets and associated liabilities (or, in the case of continuing involvement, the original carrying amount, the portion that continues to be recognised and the associated liabilities).

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

1 question

• Aube SA has transferred receivables without fully derecognising them. The transferred assets have a carrying amount of {carrying_transferred} and a fair value of {fv_transferred}; the associated liability has a carrying amount of {carrying_assoc_liab} and a fair value of {fv_assoc_liab}. The transferee's recourse is limited to the transferred assets (case facts). Calculate the net position to be disclosed where recourse is limited to the transferred assets.L3