Trade Receivables Flashcards
1
Q
IFRS Section for Trades Receivable?
A
IFRS9
2
Q
Classification and Initial Recognition of Trades Receivable?
A
- Initial at Fair Value
- then using the effect interest rate method - impairment loss
3
Q
IFRS 9?
A
IFRS 9 Financial Instruments, trade receivables are normally classified as amortized cost. Amortized
cost can be used as a classification if both of the following conditions are met:
a) the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows and
b) the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
