sukuk-investor

Sukuk classification under IFRS 9 requires applying the SPPI test first. Based on the results and your business model, you then assign the investment to amortised cost, FVOCI, or FVTPL categories.

HTC (Held-to-Collect) assigns sukuk to amortised cost measurement, while HTCS (Held-to-Collect-and-Sell) routes them to FVOCI. The choice depends on whether your business model involves selling sukuk before maturity.

Calculate ECL and amortised cost income for a 5-year sukuk by applying periodic income recognition modeling aligned with AAOIFI FAS 25 and IFRS 9 impairment requirements across the investment horizon.

IFRS 9 sukuk accounting aligns with AAOIFI FAS 25 by applying consistent guidance for initial recognition, measurement, and periodic income recognition across sukuk types like GIS and GII.

You need FVTPL classification for sukuk when the SPPI test fails, meaning payments are not solely principal and interest, preventing the use of amortised cost or FVOCI measurement categories.

Required sukuk disclosures under IFRS 7 and IFRS 9 include classification basis, SPPI analysis results, impairment modeling details, and initial recognition measurements to ensure consistent financial reporting.