Скачать или смотреть Financial Guarantee Contracts

Financial Guarantee Contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument. Financial guarantee contracts may have various legal forms, such as a guarantee, some types of letters of credit, a credit default contract or an insurance contract. Their accounting treatment does not depend on their legal form.
A financial guarantee contract meets the definition of an insurance contract. However, if the risk transferred is significant, the issuer should apply Ind AS 109. If the issuer has previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting that is applicable to insurance contracts, the issuer may elect to apply either Ind AS 109 or Ind AS 117 to such financial guarantee contracts.
If Ind AS 109 is applicable, then the issuer should recognise the financial guarantee contract initially at fair value. If the financial guarantee contract was issued to an unrelated party in a stand-alone arm’s length transaction, its fair value at inception is likely to equal the premium received, unless there is evidence to the contrary. Subsequently, unless the financial guarantee contract was designated at inception as at fair value through profit or loss, the issuer should measure it at the higher of
• the amount of a loss allowance for expected credit losses of such contract and
• the amount initially recognised less, when appropriate, the cumulative amount of income recognised as per Ind AS115