If an entity transfers a financial

If an entity transfers a financial asset in a transfer that qualifies for
derecognition in its entirety and retains the right to service the financial
asset for a fee, it shall recognise either a servicing asset or a servicing
liability for that servicing contract. If the fee to be received is not expected to compensate the entity adequately for performing the
servicing, a servicing liability for the servicing obligation shall be
recognised at its fair value. If the fee to be received is expected to be more
than adequate compensation for the servicing, a servicing asset shall be
recognised for the servicing right at an amount determined on the basis
of an allocation of the carrying amount of the larger financial asset in
accordance with paragraph 3.2.13.