sukuk-investor

INVESTOR CLASSIFICATION — IFRS 9

For sukuk held by investors, apply the IFRS 9 two-step classification:

Step 1 — Business Model Test

Held-to-collect (HTC): Investor holds sukuk to collect contractual cash flows. → If SPPI test also passed: Amortised Cost

Held-to-collect-and-sell (HTCS): Investor collects cash flows but also sells. → If SPPI test also passed: Fair Value through OCI (FVOCI, debt instrument)

Other: Trading, short-term, managed on fair value basis. → FVTPL regardless of SPPI test

Step 2 — SPPI Test (Solely Payments of Principal and Interest)