This free, guided checker walks your finance team through the key decision points for Client Money Recognition and Presentation. Answer a few questions to see the likely treatment and the evidence to document.
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This tool is a high-level IFRS screening aid for general information only and is not accounting, audit or legal advice. Conclusions require entity-specific evidence and judgement - confirm the treatment with your advisor.
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
PSP regulations define safeguarded funds as amounts received from customers held for payment transactions or e-money issuance, excluding fees and commissions retained by the provider.
No safeguarded customer funds are received, so client-money recognition analysis is not required; account for amounts received under the guidance that governs their character (IFRS 9.3.1.1; IFRS 15 for fees).
Official guidance: IFRS issued standards
Segregation supports regulatory compliance but does not alone determine on-balance-sheet recognition; assess control and insolvency protection together.
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Official guidance: IFRS issued standards
When the PSP remains liable to customers for the par value of funds despite bank insolvency, the entity controls an economic resource and typically recognizes an asset and matching liability.
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Official guidance: IFRS issued standards
Decision-making power over investment returns is an indicator the entity is principal rather than agent and supports on-balance-sheet recognition of controlled economic benefits.
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Official guidance: IFRS issued standards
Without legal isolation, consultation memos typically conclude on-balance-sheet recognition when the PSP controls access and bears customer credit exposure on bank default.
Bankruptcy-remote trust or nominee funds the entity cannot use for its own benefit are not the entity's asset; do not recognize the cash and disclose material custodial activity instead (IAS 32.11; IFRS 9.3.1.1).
Official guidance: IFRS issued standards
The liability may be owed to wallet holders even when settlement occurs through merchants, banks, or payment networks on demand.
Recognize the controlled cash without a client-money liability only if no contractual obligation to any counterparty meets the IAS 32.11 financial liability definition.
Official guidance: IFRS issued standards
Consultation conclusions typically require gross presentation of safeguarded cash and customer payables unless IAS 32 offset criteria are both satisfied.
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Official guidance: IFRS issued standards
Offsetting requires both a current legally enforceable right and an intention to settle net or simultaneously in the normal course and in default.
Without a currently enforceable right of set-off the IAS 32.42(a) criterion fails; present the recognized asset and liability gross.
Official guidance: IFRS issued standards
Operational settlement mechanics must eliminate or make insignificant credit and liquidity exposure for net presentation.
Both IAS 32.42 criteria appear satisfied; net presentation may be appropriate if the set-off right survives the normal course, default, insolvency, and bankruptcy (IAS 32.AG38B). The settlement-intention criterion in IAS 32.42(b) is not met, so present the recognized asset and liability gross.
Official guidance: IFRS issued standards
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