Under TFRS 9, financial assets are classified, based on the business model and the nature of contractual cash flows, as measured at amortised cost, at fair value through other comprehensive income or at fair value through profit or loss.
The standard replaced the incurred loss model with the expected credit loss model.
Source: TFRS 9
Related terms
Expected credit lossCredit losses on financial assets that are estimated, taking forward-looking information into account, and provided for in advance.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.Hedge accountingA special accounting approach that ensures the profit or loss effects of a hedging instrument and the hedged item are recognised in the same period.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.AssociateAn entity over which the investor has significant influence but not control or joint control.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.
Last updated: October 22, 2026 · This definition is for general information only.