Division 3.2 DERECOGNITION OF FINANCIAL ASSETSF1

United Kingdom Repealed

1. 3.2.1Division 3.2.1
2. 3.2.2Before evaluating whether, and to what extent, derecognition is appropriate under paragraphs 3.2.3–3.2.9, an entity determines whether those paragraphs should be applied to a part of a financial asset (or a part of a group of similar financial assets) or a financial asset (or a group of similar financial assets) in its entirety, as follows.
3. 3.2.3An entity shall derecognise a financial asset when, and only when:
4. 3.2.4An entity transfers a financial asset if, and only if, it either:
5. 3.2.5When an entity retains the contractual rights to receive the cash flows of a financial asset (the ‘original asset’), but assumes a contractual obligation to pay those cash flows to one or more entities (the ‘eventual recipients’), the entity treats the transaction as a transfer of a financial asset if, and only if, all of the following three conditions are met.
6. 3.2.6When an entity transfers a financial asset (see paragraph 3.2.4), it shall evaluate the extent to which it retains the risks and rewards of ownership of the financial asset. In this case:
7. 3.2.7Division 3.2.7
8. 3.2.8Division 3.2.8
9. 3.2.9Division 3.2.9
10. Transfers that qualify for derecognition
11. Transfers that do not qualify for derecognition
12. Continuing involvement in transferred assets
13. All transfers