Modification gain or loss
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Financial reporting - financial assets - financial liabilities - International Financial Reporting Standards (IFRS) - IFRS 9.
Under IFRS 9 (Appendix A) a modification gain or loss is an amount recognised immediately in profit or loss, from adjusting the gross carrying amount of a financial liability or asset to reflect renegotiated or modified contractual cash flows.
- Accounting and tax surprises under IFRS 9
- "Corporate borrowers often need to renegotiate their existing loan liabilities, and in many companies this responsibility will fall on the treasurer.
- Although treasurers may not necessarily be accounting experts, they still need to carefully consider the potential accounting impacts when renegotiating loan terms.
- Under IFRS 9: Financial Instruments, loan modifications can trigger gains and losses for financial reporting purposes and may even have tax implications."
- Renegotiating a loan? Get the accounting right - Kern Roberts, managing director, global accounting practice lead Chatham Financial.
See also
- Derecognition
- Derivative instrument
- Extinguishment
- Fair Value Adjustment
- Financial asset
- Financial instrument
- Financial liability
- Hedge accounting
- IAS 32
- IAS 39
- IFRS 9
- IFRS 9 hedge accounting reforms: a closer reflection of risk management?
- IFRS 15
- Impairment
- International Financial Reporting Standards (IFRS)
- Modification
- Non-substantial modification
- Recognition
- Set-off
- Substantial modification