Keywords: Mazars, Thailand, IFRS, IASB, IAS 28, IFRS 9
19 December 2017
This amendment clarifies that such a financial instrument must first be recognised under IFRS 9, including its provisions on the impairment of financial assets, before applying any reduction of its carrying value by allocating the accumulated losses of the equity-accounted entity, where the equity value has already been reduced to zero.
The amendment is accompanied by an illustrative example setting out the accounting consequences of a period of losses followed by a return to profitability of the equity-accounted entity.
This amendment is to be applied retrospectively for reporting periods from 1 January 2019. In the event of early application at the same time as IFRS 9, the IFRS 9 transitional arrangements must be applied.