AASB 1 First-time Adoption of Australian Accounting Standards B8-B8C: Classify financial assets on the facts at the transition date, with impracticability reliefs for the modified time value test, insignificant prepayment features and the effective interest method

What does B8-B8C require?

Whether the amortised cost conditions, or the fair value through OCI conditions, are met by a financial asset, and whether an equity instrument may be designated at fair value through OCI, is decided on the facts and circumstances at the transition date. Where assessing a modified element for the time value of money is impracticable, the asset is assessed without that modification; where it is impracticable to judge whether a prepayment feature's fair value is insignificant at initial recognition, the asset is assessed without that feature. Where retrospective application of the effective interest method is impracticable, the fair value at the transition date becomes the new gross carrying amount or amortised cost.