Which of the following “transfers” of a financial asset is most likely to require careful consideration of the derecognition principles under IFRS 9?
A. Transfer of lease receivable to a special purpose entity (SPE) via a securitization arrangement
B. Transfer of outstanding loans from one bank to an unrelated bank because of a business combination
C. Transfer of equity securities to an unrelated 3rd party via a public exchange
D. Sale of a corporate bond receivable to a 3rd party via the secondary market
A. Transfer of lease receivable to a special purpose entity (SPE) via a securitization arrangement is most likely to require careful consideration of the derecognition principles under IFRS 9. In a securitization arrangement, the transferor may still be exposed to significant risks related to the transferred asset, which would need to be assessed to determine if derecognition of the financial asset is appropriate or if it should continue to be recognized on the balance sheet due to the continued involvement with the transferred asset.
