Artículo 4.1.3. IFRS 9 Paragraph 4.1.3

For the purpose of applying paragraphs 4.1.2(b) and 4.1.2A(b) : (a) principal is the fair value of the financial asset at initial recognition. Paragraph B4.1.7B provides additional guidance on the meaning of principal. (b) interest consists of consideration for the time value of money, for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin. Paragraphs B4.1.7A and B4.1.9A⁠–⁠B4.1.9E provide additional guidance on the meaning of interest, including the meaning of the time value of money. [ Refer: Basis for Conclusions paragraphs BC4.170⁠–⁠BC4.182 ]