Derecognition

Financial reporting - IFRS 9.

Derecognition means ceasing to recognise a financial asset or financial liability in an entity's balance sheet (statement of financial position).

Criteria for derecognition - financial liabilities - financial assets

"IFRS 9 stipulates that a financial liability should be derecognised when it is extinguished - ie when the contractual obligation is discharged, cancelled or expires.

As for financial assets, these should be derecognised when the contractual rights to its cash flows expire, or when the asset is transferred (and the transfer qualifies for derecognition)."

David Passarinho MCT - The Treasurer - 2025 Issue 1, p28.

See also

• Balance sheet
• Disclosure
• Financial asset
• Financial liability
• Financial reporting
• IFRS 9
• Income statement
• Notes
• Recognition
• Reporting entity
• Statement of cash flows
• Statement of changes in equity
• Statement of financial position