Next >
PUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 41 FINANCIAL INSTRUMENTS (PBE IPSAS 41)
PBE IPSAS 41 FINANCIAL INSTRUMENTS
PBE IPSAS 41 FINANCIAL INSTRUMENTS
Objective
Scope
Definitions
Recognition and Derecognition
Classification
Measurement
Hedge Accounting
Designation of Hedging Instruments
Designation of Hedged Items
Accounting for the Time Value of Options
Accounting for the Forward Element of Forward Contracts and Foreign Currency Basis Spreads of Financial Instruments
Designation of a Component of a Nominal Amount
Presentation
Nil Net Positions
Accounting for Credit Exposures Designated at Fair Value Through Surplus or Deficit
Highly Probable Requirement for Cash Flow Hedges
Reclassifying the Amount Accumulated in the Cash Flow Hedge Reserve
Assessing the Economic Relationship Between the Hedged Item and the Hedging Instrument
Designating a Component of an Item as a Hedged Item
End of Application
Groups of Items
Designation of Risk Components
Effective Date and Transition
Entities Transitioning from PBE IFRS 9
Entities Transitioning from PBE IPSAS 29
Impairment
Scope
Definitions
Recognition and Derecognition
Regular Way Purchase or Sale of Financial Assets
Transfers that Qualify for Derecognition
Transfers that do not Qualify for Derecognition
Sale of Future Flows Arising from a Sovereign Right
Continuing Involvement in Transferred Assets
All Transfers
Examples
Classification
The Entity’s Management Model for Financial Assets
Contractual Cash Flows That are Solely Payments of Principal and Interest on the Principal Amount Outstanding
Designation Eliminates or Significantly Reduces an Accounting Mismatch
A Group of Financial Liabilities or Financial Assets and Financial Liabilities is Managed and its Performance is Evaluated on a Fair Value Basis
Instruments Containing Embedded Derivatives
Reassessment of Embedded Derivatives
Reclassification of Financial Assets
Measurement
Initial Measurement of Financial Assets and Financial Liabilities (paragraphs 57–59)
Concessionary Loans
Equity Instruments Arising from Non-Exchange Transactions
Valuing Financial Guarantees Issued Through a Non-Exchange Transaction
Investments in Equity Instruments and Contracts on Those Investments
Fair Value Measurement Considerations
Active Market: Quoted Price
No Active Market: Valuation Technique
Inputs to Valuation Techniques
Effective Interest Method
Transaction Costs
Write-off
Collective and Individual Assessment Basis
Timing of Recognising Lifetime Expected Credit Losses
Determining Whether Credit Risk has Increased Significantly since Initial Recognition
Modifications
Expected Credit Losses
Definition of Default
Period over Which to Estimate Expected Credit Losses
Probability-weighted Outcome
Time Value of Money
Reasonable and Supportable Information
Collateral
Liabilities Designated as at Fair Value Through Surplus or Deficit
Designation of Hedging Instruments
Qualifying Items
Designation of Hedged Items
Hedge Effectiveness
Economic Relationship Between the Hedged Item and the Hedging Instrument
The Effect of Credit Risk
Hedge Ratio
Frequency of Assessing Whether the Hedge Effectiveness Requirements are Met
Methods for Assessing Whether the Hedge Effectiveness Requirements are Met
Measurement of Hedge Ineffectiveness
Rebalancing the Hedging Relationship and Changes to the Hedge Ratio
Discontinuation of Hedge Accounting
Accounting for the Time Value of Options
Accounting for the Forward Element of Forward Contracts and Foreign Currency Basis Spreads of Financial Instruments
Layers of Groups of Items Designated as the Hedged Item
Presentation of Hedging Instrument Gains or Losses
Effective Date and Transition
Financial Assets Held for Trading
Impairment
Appendix B
Introduction
Application of PBE IPSAS 41 to Hedges of a Net Investment in a Foreign Operation
Example
Entity D Holds Both USD and GBP Hedging Instruments
Entity B Holds the USD Hedging Instrument
Appendix C Appendix C: Extinguishing Financial Liabilities with Equity Instruments
Introduction
Scope
Consensus
Appendix D
Basis for Conclusions
Background to the Development of IPSAS 41
PBE IFRS 9 – An Interim Standard
Decision to develop PBE IPSAS 41
Dividend and interest revenue
Transition from PBE IFRS 9
Transition from PBE IPSAS 29
Interest Rate Benchmark Reform
Interest Rate Benchmark Reform—Phase 2
2022 Omnibus Amendments to PBE Standards
Public Sector Specific Financial Instruments
Next >