3.19 Repurchase agreements

Repurchase agreements

Assets sold with a simultaneous commitment to repurchase at a specified future date (“Repo”) are not derecognized.  The counterparty liability for amounts received under these agreements is included in term loans in the consolidated statement of financial position, as appropriate.  The difference between the sale and repurchase price is treated as interest expense, which is accrued over the life of the repo agreement using the effective interest rate.