Sell-buy back, buy-sell back transactions are transactions for the sale or purchase of a security with a commitment to buy or sell back the security at an agreed date and price.
Sell-buy back transactions are recognised at the date of the transaction under amounts due to other banks or amounts due to customers in respect of deposits, depending on the contractor.
Buy-sell back securities are recognised under amounts due from banks or loans and advances to customers, depending on the counterparty.
Sell-buy back, buy-sell back are measured at amortised cost, whereas securities which are an element of a sell-buy back transaction are not derecognised in the statement of financial position and are measured at the terms and conditions specified for particular securities portfolios. The difference between the sale price and the repurchase price is recognised as interest expense/income, as appropriate, and it is amortised over the term of the contract using the effective interest rate.