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Module I· HGB vs. IFRS — Structural DifferencesAdvanced
Question

How do HGB and IFRS differ in measurement of financial instruments?

Answer

IFRS 9 uses classification and measurement based on business model and SPPI cash-flow tests; HGB is more conservative and historical-cost oriented.

Deep diveShow more details

Derivatives and hedges can create large bridge items between HGB equity and IFRS equity.

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