Superseded by IFRS 9 Financial Instruments.
IFRIC 9 clarifies that an entity must assess whether an embedded derivative is required by IAS 39 to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract.
Subsequent reassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required. A first-time adopter must assess whether an embedded derivative is required to be separated on the basis of the conditions that existed at the date it first became a party to the contract, unless there was a subsequent change in terms of the contract that significantly modified the cash flows.
In March 2006, the International Accounting Standards Board (IASB) issued IFRIC 9 Reassessment of Embedded Derivatives.
It was developed by the Interpretations Committee. Other Standards have made minor consequential amendments to IFRIC 9, including IFRS 11 Joint Arrangements (issued May 2011).
IFRIC 9 was superseded by IFRS 9 Financial Instruments.