PAGE1

FI
NANCI
ALACCOUNTI
NGANDREPORTI
NG

RECLASSI
FICATI
ONOFFI
NANCI
ALASSETS

Condi
ti
onsf
orRecl
assi
fi
cat
ionofFi
nanci
alAsset
s

UnderPFRS9,r
ecl
assi
fi
cati
onoff i
nanci
alasset
sisrequi
redif
,andonl
yif
,theobj
ect
iveoft
heent
it
y’s
busi
nessmodel
formanagesthosefi
nanci
alasset
schanges.

Ti
mingofRecl
assi
fi
cat
ionofFi
nanci
alAsset
s

I
ftheentit
ydet ermi
nest
hatitsbusi
nessmodelhaschangedi
nawayt hati
ssi
gni
fi
cantt
oi t
soperat
ions,
t
heni tr
eclassifi
esal
laf
fectedasset
sprospecti
vel
yfr
om thefi
rstdayoft
henextr
eport
ingperi
od( t
he
r
eclassi
fi
cationdate)
.Pr
iorperi
odsarenotr
estat
ed.

Or
igi
nal
Cat
egor
y NewCat
egor
y Account
ingI
mpact

Fair v al
ue i s measur ed at
recl
assif
icati
ondate.Di
ff
erencefr
om
Amor
ti
zedcost FVPL
carr
yingamountshouldberecogni
zed
i
npr ofi
torloss.

Fai
rvalueatther
ecl
assif
icat
iondate
FVPL Amor
ti
zedCost becomes it
s new gr oss carr
ying
amount

Fair v al
ue i s measur ed at
reclassif
icati
ondate.Diff
erencefr
om
amor ti
zedcostshoul dber ecogni
zed
Amor
ti
zedcost FVOCI
i
n OCI .Effecti
veint
erestrateisnot
adjusted as a r esult of t he
reclassif
icati
on.

Fairv al
ueatt hereclassif
icat
iondate
becomes i t
s new amor ti
zed cost
carrying amount
.Cumul ati
vegain or
FVOCI Amor
ti
zedcost
l
ossi nOCIi sadjustedagainstthefai
r
value of t he financi
al asset at
reclassi
fi
cati
ondate.

Fai
rv al
ue at r
ecl
assif
icat
ion dat
e
FVPL FVOCI
becomesi
tsnewcar
ryi
ngamount.

Fairv al
ue at recl
assi
fi
cation date
becomescarry
ingamount.Cumul ati
ve
FVOCI FVPL
gainorlossonOCIi sreclassi
fi
edt o
prof
itorl
ossatrecl
assi
fi
cati
ondat e

Letusassumet hefol
lowingamountsf orcost,fairvalueandamorti
zat
ionfrom 2016to2018. All
amount shavenobasisforcomputati
onandhav ebeensi mpl
if
iedf
orexpedi
ency.Theorigi
nalcostof
thefinanci
alasseti
s4,600,000wi
thaf acevalueof5, 000,
000andthefol
lowi
nginformat
ionhasbeen
gatheredattheendoft
hey earonDecember31, 2016,2017and2018.

12/
31/
16 12/
31/
17 12/
31/
18
Fai
rVal
ue 5,
200,
000 5,
400,
000 5,
500,
000
Amor
ti
zat
iononor
igi
nal
cost 50,
0000 70,
000 90,
000

10/
16
 PAGE2
Amor
ti
zat
ionon12/
31/
2016FV 40,
000 60,
000
Amor
ti
zat
ionon12/
31/
2017FV 70,
000

KEYOBSERVATI
ONS
 Thef i
nancialassetwasacqui r
edata400, 000discount( 5,000,000–4, 600,000)ther efor
et he
amor ti
zationof50, 000,70,000and90, 000shal lbeaddedt ot hecar r
yingamountoft heasseti f
ACorFVOCIshal lbetheclassi f
icati
on.
 Ifthef ai
rv alueon12/ 31/2016and12/ 31/
17shal lbeusedi ntheexampl es,theamor tizati
onof
40,000and60, 000f or2017and2018,r espect i
vel
yand70, 000f or2018shal lbededuct edfrom
thecar ryi
ngamountbecauset hef ai
rvaluerepresentsapr emi um.
 Letusassumet hatthebusi nessmodelchangesi n2017,t hereforethefinancialassetshal lbe
account ed forusi ng the rules forthe originalclassif
ication until12/31/2017 because t he
reclassif
icati
ondat eshallbe1/ 1/2018.
 Wewi llalsof oregot heent ryf orthenomi nalinterestandt heent i
reef f
ectiveinterestand
j
our nali
zedt heamor ti
zati
ononl yinthesucceedi ngexampl es.

AMORTI
ZEDCOSTTOFVPL FVPLTOAMORTI
ZEDCOST
12/
31/
2016 12/
31/
2016
FAatAC 50,
000 FAatFVPL 600,
000
Int
erestI
ncome 50,
000 Unreal
i
zedgai
n 600,
000
12/
31/
2017 12/
31/
2017
FAatAC 70,
000 FAatFVPL 200,
000
Int
erestI
ncome 70,
000 Unreal
i
zedgai
n 200,
000
1/
1/2018 1/
1/2018
FAatFVPL 5,
400,
000 FAatAC 5,
400,
000
FAatAC 4,720,
000 FAatFVPL 5,
400,
000
Unreal
i
zedGai
n(P/
L) 680,
000
12/
31/
2018
I
nter
estI
ncome 70,
000
FAatAC 70,
000

AMORTI
ZEDCOSTTOFVOCI FVOCITOAMORTI
ZEDCOST
12/
31/
2016 12/
31/
2016
FAatAC 50,
000 FAatFVOCI 50,
000
Int
erestI
ncome 50,
000 Int
erestI
ncome 50,
000

FAatFVOCI 550,
000
Unreal
i
zedgai
n–OCI 550,
000
12/
31/
2017 12/
31/
2017
FAatAC 70,
000 FAatFVOCI 70,
000
Int
erestI
ncome 70,
000 Int
erestI
ncome 70,
000

FAatFVOCI 130,
000
Unreal
i
zedgai
n–OCI 130,
000
1/
1/2018 1/
1/2018
FAatFVOCI 5,
400,
000 FAatAC 5,
400,
000
FAatAC 4,720,
000 FAatFVOCI 5,
400,
000
Unreal
i
zedGai
n-OCI 680,
000
Unr
eali
zedgai
n-OCI 680,
000
12/
31/
2018 FAatAC 680,
000

10/
16
 PAGE3

I
nter
estI
ncome 70,
000
FAatFVOCI 70,
000 12/
31/
2018
FAatFVOCI 170,
000 FAatAC 90,
000
Unreal
i
zedgai
n-OCI 170,
000 Int
erestI
ncome 90,
000
(
5,500,
000–(
5,400,
000–70,
000)=170,
000

FVPLTOFVOCI FVOCITOFVPL

12/
31/
2016 12/
31/
2016

FAatFVPL 600,
000 FAatFVOCI 50,
000
Unreal
i
zedgai
n 600,
000 Int
erestI
ncome 50,
000

FAatFVOCI 550,
000
Unreal
i
zedgai
n–OCI 550,
000

12/
31/
2017 12/
31/
2017

FAatFVPL 200,
000 FAatFVOCI 70,
000
Unreal
i
zedgai
n 200,
000 Int
erestI
ncome 70,
000

FAatFVOCI 130,
000
Unreal
i
zedgai
n–OCI 130,
000

1/
1/2018 1/
1/2018

FAatFVOCI 5,
400,
000 FAatFVPL 5,
400,
000
FAatFVPL 5,400,
000 FAatFVPL 5,
400,
000

12/31/2018 Unr
eali
zedgai
n-OCI 680,
000
I
nterestIncome 70,
000 Gai
nonFVPL 680,
000
FAatAC 70,
000
12/
31/
2018
FAatFVOCI 170,
000
Unreal
i
zedgai
n-OCI 170,
000 FAatFVPL 100,
000
Unr
eal
izedgai
n(P/
L) 100,
000
(
5,500,
000–(
5,400,
000–70,
000)=170,
000

--END--

10/
16