How is the uncollectibility charge for financial assets measured at fair value through other comprehensive income (IRI) accounted for?
The impairment charge in Section 5.5 of IFRS 9 applicable to financial assets that are measured at fair value through changes in ORI should be recognized in profit or loss, as if it were a financial asset measured at amortized cost (reference: paragraphs 5.2.2, 5.7.10 and 5.7.11 of IFRS 9). However, the value adjustment should be recognised in ORI, not by reducing the carrying amount of the financial asset in the statement of financial position (reference: paragraph 5.5.2 of IFRS 9).
Rules involved:
IFRS 9 – Financial Instruments