Derecognition
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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.