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Salient Differences Between IAS 39 and IFRS 9
Salient Differences Between IAS 39 and IFRS 9
Held-to-maturity (HTM)
Basis of Intention to hold till maturity, trading Classification based on business model
classification for short term profits, derivative, loan and the contractual cash flow
or receivable, or intentional characteristics
designation subject to certain
restrictions
Measurement Measured at amortised cost if Measured at amortised cost (AC) if
– Debt classified as held-to-maturity or as business model objective is to
Instruments loan or receivable. collect the contractual cash flows and the
Other classifications are contractual cash flows represent solely
measured at fair value. payment of principal and interest on the
principal amount outstanding.
Debt instruments meeting the
above criteria can still be measured
at fair value through profit or loss
(FVPL) if such designation would
eliminate or reduce accounting
mismatch.
Fair value option An entity can designate a financial A financial asset can be designated as
asset to be measured at fair value on FVPL on initial recognition only
initial recognition. if that designation eliminates or
The entity has the freedom to do significantly reduces an accounting
so and need not satisfy any other mismatch had the financial asset been
measured at amortised
criteria cost.