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Financial Assets at Amortized Cost Financial Assets at Fair Value Through Profit Or Loss
Requisites for The asset is held to collect its Requisites for Both held for Trading or Non
Classification contractual cash flows and Classification Trading
The asset’s contractual cash flows
represent ‘solely payments of Profit or Loss Dividends
principal and interest’ Implications Direct transaction cost incurred on
Profit or Loss Effective interest income acquisition
Implications Impairments losses and reversal Gain or loss on changes in fair value
gains on subsequent measurement
Gain or loss on derecognition Gain or loss on derecognition
Statement of Measured at amortized cost Statement of Measured at fair value
financial position Classified as a non current asset Financial Under the assumption the Financial
unless maturity is within 12 months Position asset is held for trading, FVPL shall be
after the end of the reporting period classified as a current asset (PAS 1)
Financial Assets at Fair Value Through Other Financial Assets at Fair Value Through Other
Comprehensive Income Comprehensive Income
Requisites for The objective of the business model Requisites for An irrevocable election to present in
Classification is achieved both by collecting Classification OCI an investment in equity
contractual cash flows and selling instruments that is not held for
financial assets; and trading
The asset’s contractual cash flows
represent SPPI. Profit or Loss Dividends
Implications
Profit or Loss Effective interest (income)
Implications Impairments losses and reversal OCI Changes in fair value due to
gains ‘subsequent measurement
Gain or loss on derecognition Gain or loss on derecognition and may
including reclassification be transferred within Equity (Retained
adjustments (PAS 1) Earnings)
OCI Changes in fair value due to Statement of Measured at fair value
subsequent measurement Financial Cumulative gain or loss on fair value
Position in Equity
Statement of Measured at fair value after Non trading investments are classified
Financial amortization for the effective interest under the non current assets section
Position Cumulative gain or loss on fair value of the statement of financial position
in Equity
Since PFRS 5 excludes the scope Note that PFRS 9 has eliminated the impairment loss
for financial assets, FVOCI are non category for equity instruments
current asset unless maturity is
within 12 months after the end of the
reporting period