CIMA F1 Syllabus B. Financial Statements - Chapter 5: De-Recognition - Notes ^{7 / 10}

Derecognition should aim to represent faithfully both:

• any assets and liabilities retained after the transaction that led to the derecognition; and

• the change in the entity’s assets and liabilities as a result of that transaction.

In situations when derecognition supported by disclosure is not sufficient to meet both aims, it might be necessary for an entity to continue to recognise the transferred component.