[Verse 1] When financial assets come your way IFRS nine shows the classification play Three categories you need to know Let me break it down so knowledge can flow Business model test comes first in line How you manage assets by design Hold to collect or trade for gain The model you choose will set the frame [Chorus] AC-FVOCI-FVTPL Three buckets where your assets dwell Amortized cost when you hold tight Fair value changes in your sight Business model, cash flow test Two criteria for success AC-FVOCI-FVTPL Classification done extremely well [Verse 2] Contractual cash flows take the stage Principal and interest on the page SPPI test must pass the line Solely payments by design If both tests align just right Amortized cost comes into sight Hold to collect with cash flows plain AC treatment you will gain [Chorus] AC-FVOCI-FVTPL Three buckets where your assets dwell Amortized cost when you hold tight Fair value changes in your sight Business model, cash flow test Two criteria for success AC-FVOCI-FVTPL Classification done extremely well [Verse 3] Hold to collect and sell combined FVOCI classification you will find SPPI still must pass the test Other comprehensive income blessed Recycling gains when assets sold Back to profit loss unfold Fair value through OCI way Equity section where changes stay [Bridge] When SPPI fails or trading calls FVTPL breaks down the walls Fair value through the profit line Every change hits bottom line No recycling, straight impact Income statement stays intact [Chorus] AC-FVOCI-FVTPL Three buckets where your assets dwell Amortized cost when you hold tight Fair value changes in your sight Business model, cash flow test Two criteria for success AC-FVOCI-FVTPL Classification done extremely well [Outro] Business model sets the tone Cash flow tests stand alone Three categories clear and bright IFRS nine classification right
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