A-IFRS

A-IFRS stands for Australian Interpretations and Financial Reporting Standards. It is a set of interpretations and standards issued by the Australian Accounting Standards Board (AASB) that supplement the International Financial Reporting Standards (IFRS).

In securitisation, A-IFRS provides guidance on a number of issues, including:

The accounting treatment of securitisations
The disclosures required for securitisations
The criteria for determining whether a securitisation should be consolidated by the originator
A-IFRS is important for securitisation because it provides clarity and consistency in the accounting treatment of securitisations. This is important for investors, who need to be able to understand the risks and rewards of securitisations.

Here are some of the key provisions of A-IFRS in securitisation:

Securitisations must be accounted for using the derecognition provisions of IFRS 9. This means that the originator of a securitisation will derecognise the assets that are transferred to the securitisation special purpose vehicle (SPV) only if it has transferred substantially all of the risks and rewards of ownership of those assets.
Securitisations must be disclosed in accordance with IFRS 7. This means that the originator of a securitisation must disclose information about the nature and extent of its involvement in the securitisation, as well as the risks and rewards that it retains.
If the originator of a securitisation retains control of the SPV, the securitisation must be consolidated by the originator. This is because the originator will continue to be exposed to the risks and rewards of the assets that have been transferred to the SPV.
A-IFRS is a complex set of standards, and it is important for originators and investors to seek professional advice to ensure that they are complying with the requirements.