Ch 5 · Ind AS 109 — Financial Instruments

⭐ Important points (exam-critical)

• ⭐Embedded derivatives: separated if not closely related, host not at FVTPL, derivative criteria met.
• ⭐Stage 1 (12-mth ECL), Stage 2 (lifetime ECL, no impairment), Stage 3 (lifetime ECL + credit-impaired).
• ⭐Hedge effectiveness: prospective test; no need for 80-125% range under Ind AS 109.
• ⭐Equity instrument FVOCI election: dividends in P&L, FV changes never recycled.