CFM21830 - IFRS 9: classification of financial assets

For those entities applying IFRS or FRS 101 with a period of account beginning before 1 January 2018 refer to IAS 39 for the recognition and measurement of financial instruments at CFM21520+

Financial assets

Financial assets are defined at CFM21060.

IFRS 9 requires financial assets to be classified in one of the following categories:

  • Amortised Cost;
  • Fair Value through Other Comprehensive Income (FVTOCI); and
  • Fair Value through Profit or Loss (FVTPL).

To determine which category a financial asset should be classified as a company must apply two tests:

  1. The business model test; and
  2. The contractual cash flow test.

See CFM21840 for more details.