Some stakeholders have suggested that the requirements for equity investments in IFRS 9 could discourage long-term investment. [IFRS 9 … Under IFRS 9, a financial asset is classified and subsequently measured at amortized cost if it meets both the: ... Generally, loans between fellow subsidiaries fall within the scope of IFRS 9.

IFRS 9 Financial Instruments 3 An entity shall apply this Standard retrospectively, in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, except if it is impracticable (as defined in IAS 8) for an entity to assess a modified time value of money element.

Such loans would likely meet the tests within IFRS 9 for subsequent measurement at amortized cost. Separate financial statements are covered in IAS 27 and are defined as financial statements in which investments in subsidiaries, joint ventures and associates and accounted either at cost, in accordance with IFRS 9 or using the equity method.. Appendix I illustrates example disclosures for an investment fund that is an investment entity and measures its subsidiaries at fair value through profit or loss (FVTPL). When an entity does not have investments in subsidiaries, joint ventures or associates, it does not prepare … fellow subsidiary. This option, as an amendment to IAS 27, is additional to the current two options available which allow entities to account for their investments in subsidiaries, joint ventures and associates either at cost or in accordance with International Financial Reporting Standard (IFRS) 9, Financial Instruments (IFRS 9), in their separate financial statements.

Hi Silvia, we have a subsidiary in a foreign country and the subsidiary needed to take a loan. Rather, IAS 27 applies to such investments. Accordingly, the entity applies IFRS 9 for the first time in accounting for its retained interest in the investee. This will involve providing the transition disclosures in IFRS 7 Financial Instruments: Disclosures (as introduced by IFRS 9) and IFRS 15, as well as the general disclosures in paragraph 28 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, when applicable. IFRS 9 generally has to be applied by all entities preparing their financial statements in accordance with IFRS and to all types of financial instruments within the scope of IAS 39, including derivatives. Debt instruments It must be reminded that the receiver of the debt contract, or the rights owner should book the debt as assets; while the payer of debt contract should book the debt as liabilities. Yes.