SPECIFIC US GAAP GUIDANCE

While IFRS explicitly includes some of the more specific guidance of US GAAP, the general guidance can fit within the applicable US GAAP guidance. IFRS, in IAS 8, Accounting Policies, allows the reference to the current guidance of another standard setter with a common framework to IFRS when no direct or analogous guidance exists.

US GAAP includes guidance about the impact that the pending sale of a security, or even a bona fide offer to sell, whether or not solicited, is below the original amortized costs and has on the incidence and measurement of impairment. For debt securities, if an entity intends to sell, or more likely than not will be required to sell an AFS or HTM security, if the fair value is less than the original cost of the investment, an OTT impairment is deemed to have occurred. If the entity will sell or will more likely than not be required to sell the investment, the entire difference between the amortized costs and the fair value is recognized in earnings. Otherwise, only credit losses are recognized in income, with the remainder recognized in OCI.