Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p44
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 118509–121378

regardless of whether the embedded derivative is not separated by the entity applying paragraph 4.3.3 of AASB 9 or applying paragraph 4.3.5 of AASB 9.

Liabilities arising from issued investment contracts with participation features
B58 Paragraph 64(a) sets out requirements for income and expenses from liabilities arising from issued investment contracts with participation features recognised applying AASB 9. Examples of such investment contracts are:
(a) an investment contract with participation features issued by an insurer that does not meet the definition in AASB 17 of an investment contract with discretionary participation features; and
(b) an investment contract with participation features issued by an investment entity.

Income and expenses classified in the operating category by an entity that provides financing to customers as a main business activity
B59 Paragraph 65 requires an entity that provides financing to customers as a main business activity to classify in the operating category income and expenses from some or all liabilities that arise from transactions that involve only the raising of finance. An entity shall also apply the requirements in that paragraph to income and expenses from a derivative relating to a transaction that involves only the raising of finance specified in paragraph B73(a), but not to the income and expenses from a hybrid contract specified in paragraph B56(c)(i).

Derecognition and changes in classification

Derecognition of an asset or liability, or classification and remeasurement of an asset as held for sale
B60 Paragraphs B47(g) and B49(e) refer to income and expenses from the derecognition of an asset, or its classification as held for sale. An entity shall classify income and expenses on the derecognition of an asset, or its classification as held for sale and any subsequent measurement while held for sale, in the same category as it classified the income and expenses from the asset immediately before its derecognition. For example, an entity shall classify gains and losses:
(a) on the disposal of property, plant and equipment – in the operating category;
(b) on the disposal of an investment property that an entity does not invest in as a main business activity – in the investing category; and
(c) from the remeasurement of an investment in an associate previously accounted for using the equity method on the step acquisition of a subsidiary – in the investing category.
B61 An entity shall classify income and expenses from the derecognition of a liability by applying the requirements in paragraphs 52 and 59–60. For example, the entity classifies income and expenses from the derecognition of a liability:
(a) in the financing category – if the liability arises from a transaction that involves only the raising of finance by an entity that does not provide financing to customers