Disclosure and presentation

Financial Assets Carried at an Amount in Excess of Fair Value 
95. 
When an entity carries one or more financial assets at an amount in 
excess of their fair value, the entity shall disclose:
(a) 
The carrying amount and the fair value of either the individual 
assets or appropriate groupings of those individual assets; and
(b) 
The reasons for not reducing the carrying amount, including the 

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FINANCIAL INSTRUMENTS: DISCLOSURE AND PRESENTATION 
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nature of the evidence that provides the basis for management’s 
belief that the carrying amount will be recovered. 
96. 
Management exercises judgment in determining the amount it expects to recover 
from a financial asset and whether to write down the carrying amount of the asset 
when it is in excess of fair value. The information required by paragraph 95 
provides users of financial statements with a basis for understanding 
management’s exercise of judgment and assessing the possibility that 
circumstances may change and lead to a reduction in the asset’s carrying amount 
in the future. When appropriate, the information required by paragraph 95(a) is 
grouped in a manner that reflects management’s reasons for not reducing the 
carrying amount. 
97. 
An entity’s accounting policies with respect to recognition of declines in value 
of financial assets, disclosed in accordance with paragraph 54, assist in 
explaining why a particular financial asset is carried at an amount in excess of 
fair value. In addition, the entity provides the reasons and evidence specific to 
the asset that provide management with the basis for concluding that the 
asset’s carrying amount will be recovered. For example, the fair value of a 
fixed rate loan intended to be held to maturity may have declined below its 
carrying amount as a result of an increase in interest rates. In such 
circumstances, the lender may not have reduced the carrying amount because 
there is no evidence to suggest that the borrower is likely to default.