accounting

Ind AS 109: Financial Instruments

Ind AS 109 - financial assets classification, measurement, and expected credit loss model.

GetYourCA Team
2 April 2026·Updated 2 April 20261 min read12.5K views
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Ind AS 109: Financial Instruments#

Classification#

CategoryMeasurement
Fair Value Through P&LAmortized cost
FVOCI (Equity)Fair value
FVOCI (Debt)Amortized cost
Amortized CostAmortized cost

Initial Recognition#

  • Fair value + transaction costs
  • Exception: Trade receivables

Impairment#

Expected Credit Loss (ECL)

  • 12-month ECL (Stage 1)
  • Lifetime ECL (Stage 2/3)
  • Default presumption: 12 months

Derecognition#

  • Transfer of contractual rights
  • Liability extinguished

Disclosure#

  • Carrying amounts
  • Fair value hierarchy
  • Risk concentrations

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