TaxTMI 
TaxTMI 
Derecognition of Financial Asset
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.... flows AND Entity has transferred substantially all the risks and rewards. * Entity has neither retained nor transferred substantially all the risks and rewards AND Entity has not retained control of the assets. Derecognition requirements are applied to a part of a financial asset if that part meets any of the following three conditions: * The part comprises only specifically identified cash ....
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....inancial asset (or a group of similar financial assets) Example- when an entity enters into an arrangement whereby the counterparty obtains the rights to a 90% share of interest cash flows from a financial asset, derecognition principles are applied to 90% of those interest cash flows. In some situations, though an entity retains the contractual rights to receive the cash flows of a financial a....
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....tion to remit any cash flows it collects on behalf of the eventual recipients without material delay. In addition, the entity is not entitled to reinvest such cash flows, except for investments in cash or cash equivalents (as defined in Ind AS 7 Statement of Cash Flows) during the short settlement period from the collection date to the date of required remittance to the eventual recipients, and in....
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....allocation of the carrying amount of the larger financial asset. If, as a result of a transfer, a financial asset is derecognised in its entirety but the transfer results in the entity obtaining a new financial asset or assuming a new financial liability, or a servicing liability, the entity shall recognise the new financial asset, financial liability or servicing liability at fair value. On der....