The impairment amount recognised depends on whether or not the financial instruments have significantly deteriorated since their initial recognition. HKFRS 9 ‘Financial Instruments’ describes three-stage models. Required: Which of the following is stage 3 model as described in HKFRS 9? A. Financial assets have had a significant increase in credit risk since initial recognition with objective evidence of impairment B. Financial assets have had a significant increase in credit risk since initial recognition (unless they have low credit risk at the reporting date) but that do not have objective evidence of impairment C. Financial assets have not had a significant increase in credit risk since initial recognition or that have low credit risk at the reporting date D. Financial assets have high credit risk at the reporting date
The impairment amount recognised depends on whether or not the financial instruments have significantly deteriorated since their initial recognition. HKFRS 9 ‘Financial Instruments’ describes three-stage models.
Required: Which of the following is stage 3 model as described in HKFRS 9?
A.
Financial assets have had a significant increase in credit risk since initial recognition with objective evidence of impairment
B.
Financial assets have had a significant increase in credit risk since initial recognition (unless they have low credit risk at the reporting date) but that do not have objective evidence of impairment
C.
Financial assets have not had a significant increase in credit risk since initial recognition or that have low credit risk at the reporting date
D.
Financial assets have high credit risk at the reporting date
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