Recognition
From Open Risk Manual
Revision as of 00:45, 28 January 2020 by Wiki admin (talk | contribs)
Definition
(Initial) Recognition in the context of IFRS 9 denotes the first inclusion of an asset or liability in financial reporting. Reporting entities must recognise a financial asset or a financial liability in its statement of financial position when, and only when, the entity becomes party to the contractual provisions of the instrument (e.g. when originating or purchasing an asset).
Derecognition denotes the exclusion of an asset or liability from reporting when when the contractual rights to the cash flows from the financial asset expire, or the reporting entity transfers the financial asset
