IFRS 7 paras 42A-42H, disclosure for transfers of financial assets that have not been derecognised

SoftBank Group Corp. – Annual report – 31 March 2018

Industry: telecoms, software

  1. Transfers of financial assets

The Company enters into securitization transactions involving trade and installment receivables.

The major securitization transactions involve the securitization of receivables related to wireless service charges due from subscribers, future lease receivables occurring from lease transactions of devices to customers, and installment receivables recognized from the mobile handset sales business.

For each transaction, the Company transferred receivables to financial institutions and acquired cash and a subordinate interest in the transferred receivables for financing purposes. The receivables sold are not derecognized because in each transaction, the Company retains a subordinate interest and, therefore, substantially retains all the risks and rewards of ownership of the transferred assets. Cash received from transferring the receivables are included in “Interest-bearing debt” under current liabilities and non-current liabilities.

The following table presents the carrying amount of financial assets and related liabilities that are transferred but do not meet the derecognition criteria, as well as the fair value where related liabilities have recourse only to the transferred assets:

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The difference between transferred assets and related liabilities is the subordinate interest which the Company retains on securitization.

 

 

 

 

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