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Investments 1

The document compares the classification and accounting treatment of financial assets under PFRS 9 based on the business model of the investor. It shows that financial assets measured at fair value through profit or loss are current assets measured at fair value with changes in fair value and transaction costs recognized in profit or loss. Financial assets at fair value through other comprehensive income are non-current assets measured at fair value plus transaction costs, with changes in fair value recognized in other comprehensive income.

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Lyanna Mormont
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58 views1 page

Investments 1

The document compares the classification and accounting treatment of financial assets under PFRS 9 based on the business model of the investor. It shows that financial assets measured at fair value through profit or loss are current assets measured at fair value with changes in fair value and transaction costs recognized in profit or loss. Financial assets at fair value through other comprehensive income are non-current assets measured at fair value plus transaction costs, with changes in fair value recognized in other comprehensive income.

Uploaded by

Lyanna Mormont
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PFRS 9 FAFVPL FAFVOCI FAAC

Criteria for classification To obtain gain or loss on changes in To collect contractual cash flows To collect contractual cash flows
fair value or to sell the bonds for from principal and interest of from principal and interest of
(Business Model of Investor) short term profit bonds and to sell the bonds to bonds
obtain gain or loss

Classification Current Asset Non-current Asset Non-current Asset  Current Asset

Initial Measurement Fair Value Fair Value + Transaction Costs Fair Value + Transaction Costs

Transaction Costs Expense (P/L) Capitalizable Capitalizable

Interpolation of EIR   

Subsequent Measurement Fair Value Fair Value Amortized Cost

G/L on Change in Fair Value  (P/L)  (OCI with RA) ; (P/L if realized) 

Interest Income (P/L) Nominal Interest Effective Interest Effective Interest

(Face Value x Nominal Rate) (Amortized Cost x EIR) (Book Value x EIR)

Amortization of Discount/
Premium
  

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