IFRS in Practice 2019
13. Mai 2019
IFRS 9 Financial Instruments makes no distinction between unrelated third party and related party transactions. Entities that prepare stand-alone financial statements are required to apply the full provisions of the standard to all transactions within its scope. This means related company loan receivables must be classified and measured in accordance with the requirements of IFRS 9, including where relevant, applying the Expected Credit Loss (ECL) model for impairment. The purpose of this publication is to illustrate the application of IFRS 9 to a number of common intragroup funding structures that a typical real estate group might have in place.
In Section 1, we consider five common funding structures for an investment property group.
In Section 2, we consider a typical funding structure for a property development group, such as a house-builder.