Chapter 16
Accounting news
Lower financial liabilities by electronic transfer
There is an amendment to IFRS 9, effective January 1, 2026, regarding the derecognition of a financial liability settled by an electronic transfer.
A liability is derecognized on the settlement date, which is the date on which the liability is extinguished because the obligation specified in the contract is discharged, cancelled, or has expired.
When a financial liability is settled in cash using an electronic payment system, an entity is permitted to derecognize the financial liability before the settlement date if, and only if:
A. The entity has initiated a payment instruction which has resulted in the entity having no practical ability to withdraw, stop, or cancel the payment instruction.
B. The entity does not have the practical ability to access cash that will be used for settlement as a result of the payment instruction.
C. The risk of settlement associated with the payment system is insignificant.
Accounting inquiries
How is an exchange accounted for between a lender and a borrower of a loan with substantially different terms?
A swap between a lender and a borrower of debt instruments with substantially different conditions will be accounted for as a derecognition of the original financial liability, recognizing a new financial liability.
Similarly, a substantial modification to the current terms of an existing financial liability or a portion thereof shall be accounted for as a derecognition of the original financial liability and the recognition of a new liability.
Passive voice reduction A liability is derecognized on the settlement date, which is the date on which the liability is extinguished because the obligation specified in the contract is discharged, cancelled, or has expired.
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Functional Currency: IFRS NEWS December 2025 – Siglo BPO
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