First-time adoption while classifying a financial instrument
There are several judgemental decisions which an entity is required to make at the inception of a financial instrument. What should an entity do on first-time adoption to classify and measure such financial instrument?
The conditions for classification and measurement of financial assets are based on the facts and circumstances that exist at the date of transition to Ind AS in relation to modified time value of money element and the fair value of pre-payment feature if present in a financial asset. When it becomes impracticable to assess the impact of these features, the financial asset shall be assessed without taking into account the impact of the same.
