# Commission Regulation (EC) No 2086/2004 of 19 November 2004 amending Regulation (EC) No 1725/2003 on the adoption of certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards the insertion of IAS 39 (Text with EEA relevance), Division: Subsequent Measurement of Financial Liabilities

Extent: E+W+S+N.I.

47.. After initial recognition, an entity shall measure all financial liabilities at amortised cost using the effective interest method, except for:
(a) financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be measured at fair value except for a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument whose fair value cannot be reliably measured, which shall be measured at cost.
(b) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or is accounted for using the continuing involvement approach. Paragraphs 29 and 31 apply to the measurement of such financial liabilities
Financial liabilities that are designated as hedged items are subject to measurement under the hedge accounting requirements in paragraphs 89 - 102.

---
Source: https://www.legislation.gov.uk/eur/2004/2086/annex/n2/division/7/division/3 (the official version)
Page: https://openlegislation.uk/eu-regulation-2004-2086/annex-n2/division-7/division-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.