The purpose of this Treasury Policy Paper is to provide guidance and outline NSW Treasury’s requirements for applying AASB 9 Financial Instruments and AASB 132 Financial Instruments: Presentation by agencies, including:
- general requirements for the classification, recognition and measurement of financial instruments in accordance with AASB 9 and AASB 132 (sections 2 to 6)
- restrictions on the use of the following categories of financial instruments:
- fair value designation option (sections 3.4.3 and 4.1);
- fair value through other comprehensive income of equity instruments designation option (section 3.3)
- guidance and requirements regarding accounting for:
- impairment for expected losses (section 7)
- hedge accounting (section 8).
