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Hi,
It is mentioned in the IFRS 9 Financial Assets Lecture that Debt is classified at FVOCI if it is held for sale or if there is no intention to hold it until maturity. But a lot of books are saying that debt is classified at FVTPL is there is an intention to sell it in future? Can you please tell me which is right? Thanks in advance.
Hi,
If the debt instrument is not classified as amortised cost or FVTOCI, then it would have to be held at FVTPL.
So you need to look at the criteria for the first two scenarios based upon the business model and contractual cash flow tests, if it fails these then it cannot be classified as anything else other than FVTPL.
Thanks
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