Ch 5 · Ind AS 109 — Financial Instruments

📘 Core concepts

1. 1Classification: business model test + SPPI (Solely Payments of Principal & Interest) test.
2. 2Categories: Amortised Cost, FVOCI (with/without recycling), FVTPL.
3. 3Impairment: Expected Credit Loss (ECL) model — 12-month vs lifetime; 3 stages.
4. 4Hedge accounting: fair value hedge, cash flow hedge, net investment hedge.
5. 5Modification & derecognition rules; substantial modification → derecognition.