Artículo B4.1.20A. IFRS 9 Paragraph B4.1.20A

Some transactions that may contain multiple debt instruments and appear to have the characteristics described in paragraph B4.1.20 are, in fact, lending arrangements that are structured to provide enhanced credit protection to a creditor (or group of creditors). For example, a structured entity may be set up to hold the underlying assets that will generate the cash flows to repay the creditor. The structured entity issues senior and junior debt instruments. The creditor holds the senior debt instrument and the entity sponsoring the structured entity that holds the junior debt instrument has no practical ability to sell the junior instrument without the senior debt instrument becoming payable. The holders of such debt instruments apply paragraphs B4.1.7⁠–⁠B4.1.19 instead of paragraphs B4.1.21⁠–⁠B4.1.26 . [ Refer: Basis for Conclusions paragraphs BC4.295-BC4.299 ]