SPPI test (solely payments of principal and interest)

Roles that need it

• General Accountant
• External Audit (Financial Services)
• Accounting Advisory Associate
• Credit Risk Analyst

Skills it belongs to

• International accounting standards (IFRS)
• Bank product accounting (loans, deposits, EIR, IFRS 9 stages)

Related concepts

• Amortised costAmortised cost is the IFRS 9 measurement for financial assets held to collect contractual cash flows that are solely payments of principal and interest. The carrying amount is the initial amount adjusted by effective interest and repayments, less the loss allowance.
• IFRS 9 Financial InstrumentsIFRS 9 is the IFRS Accounting Standard for financial instruments, applied since 1 January 2018. It sets how financial assets are classified and measured, requires an expected credit loss allowance from day one through a three-stage model, and sets the rules for hedge accounting.

Sources

• IFRS 9 Financial Instruments, IFRS Foundation (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.