Liabilities at amortised cost and exceptions

Learning objectives

• Identify the default rule (amortised cost) and the main exceptions (fair value through profit or loss, financial guarantee contracts, commitments to provide a loan at a below-market interest rate, transfers that do not qualify for derecognition).L1

Normative references

• IFRS 9 §4.2.1Financial liabilities are classified as subsequently measured at amortised cost, except: (a) financial liabilities at FVTPL, including derivative liabilities, measured at fair value; (b) financial liabilities arising when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies; (c) financial guarantee contracts and (d) commitments to provide a loan at a below-market interest rate, measured by the issuer at the higher of the loss allowance determined in accordance with Section 5.5 and the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with IFRS 15; (e) contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies, measured at fair value through profit or loss.

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

3 questions

• A financial liability is subsequently measured at fair value through profit or loss, with some exceptions.L1
• Among these financial liabilities, which one is an exception to subsequent measurement at amortised cost?L1
• Which situations are an exception to the subsequent measurement of a financial liability at amortised cost? Several answers are possible.L1