Document ID: chunk:federal_register_of_legislation:F2022L00398:body:0:p3
Version: federal_register_of_legislation:F2022L00398
Segment Type: other
Provision Reference: 
Character Range: 5662–8551

AASB 9 at the same time is permitted to apply paragraphs C28B–C28E (classification overlay) for the purpose of presenting comparative information about a financial asset if the comparative information for that financial asset has not been restated for AASB 9. Comparative information for a financial asset will not be restated for AASB 9 if either the entity chooses not to restate prior periods (see paragraph 7.2.15 of AASB 9), or the entity restates prior periods but the financial asset has been derecognised during those prior periods (see paragraph 7.2.1 of AASB 9).
C28B An entity applying the classification overlay to a financial asset shall present comparative information as if the classification and measurement requirements of AASB 9 had been applied to that financial asset. The entity shall use reasonable and supportable information available at the transition date (see paragraph C2(b)) to determine how the entity expects the financial asset would be classified and measured on initial application of AASB 9 (for example, an entity might use preliminary assessments performed to prepare for the initial application of AASB 9).
C28C In applying the classification overlay to a financial asset, an entity is not required to apply the impairment requirements in Section 5.5 of AASB 9. If, based on the classification determined applying paragraph C28B, the financial asset would be subject to the impairment requirements in Section 5.5 of AASB 9 but the entity does not apply those requirements in applying the classification overlay, the entity shall continue to present any amount recognised in respect of impairment in the prior period in accordance with AASB 139 Financial Instruments: Recognition and Measurement. Otherwise, any such amounts shall be reversed.
C28D Any difference between the previous carrying amount of a financial asset and the carrying amount at the transition date that results from applying paragraphs C28B–C28C shall be recognised in opening retained earnings (or other component of equity, as appropriate) at the transition date.
C28E An entity that applies paragraphs C28B–C28D shall:
(a) disclose qualitative information that enables users of financial statements to understand:
(i) the extent to which the classification overlay has been applied (for example, whether it has been applied to all financial assets derecognised in the comparative period);
(ii) whether and to what extent the impairment requirements in Section 5.5 of AASB 9 have been applied (see paragraph C28C);
(b) only apply those paragraphs to comparative information for reporting periods between the transition date to AASB 17 and the date of initial application of AASB 17 (see paragraphs C2 and C25); and
(c) at the date of initial application of AASB 9, apply the transition requirements in AASB 9 (see Section 7.2 of AASB 9).

Redesignation of financial assets
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