Document ID: chunk:federal_register_of_legislation:F2023C00399:body:0:p65
Version: federal_register_of_legislation:F2023C00399
Segment Type: other
Provision Reference: 
Character Range: 169919–173457

maturity amount and, for financial assets, adjusted for any loss allowance.
contract assets                                             Those rights that AASB 15 Revenue from Contracts with Customers specifies are accounted for in accordance with this Standard for the purposes of recognising and measuring impairment gains or losses.
credit-impaired financial asset                             A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired include observable data about the following events:
                                                            (a) significant financial difficulty of the issuer or the borrower;
                                                            (b) a breach of contract, such as a default or past due event;
                                                            (c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
                                                            (d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
                                                            (e) the disappearance of an active market for that financial asset because of financial difficulties; or
                                                            (f) the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.
                                                            It may not be possible to identify a single discrete event – instead, the combined effect of several events may have caused financial assets to become credit-impaired.
credit loss                                                 The difference between all contractual cash flows that are due to an entity in accordance with the contract and all the cash flows that the entity expects to receive (ie all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). An entity shall estimate cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument. The cash flows that are considered shall include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. There is a presumption that the expected life of a financial instrument can be estimated reliably. However, in those rare cases when it is not possible to reliably estimate the expected life of a financial instrument, the entity shall use the remaining contractual term of the financial instrument.
credit-adjusted effective interest rate                     The rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial asset to the amortised cost of a financial asset that is a purchased or originated credit-impaired financial asset. When calculating the credit-adjusted effective interest rate, an entity shall estimate the expected cash flows by considering all contractual terms of the financial asset (for example, prepayment, extension, call and similar