A financial asset why can be measured at the below category options?
Fair value: what happens with transaction costs if there is? Example?
Fair value through pl: transaction cost are added to pl. ok? Example?
Fair value through OCI: what happens with transaction costs?
Amortized cost: what happens with transaction cost?
You have not explained each of them with examples and the need for each category in practice.
What is a transaction cost by the way? would you please provide examples?
P
Paula·
Hi,
When would you classify a financial asset under the initial recognition as fair value through profit and loss?
What is the difference between recognize at fair value incl transaction costs versus fair value through profit and loss as per the notes?
Thank you :-).
Krgrds,
Paula.
P
P2-D2Tutor·
For equity instruments FVTPL is the default classification. The transaction costs are then expensed through profit or loss.
If it is FVTOCI then the transaction costs are added to the initial FV.
A financial asset why can be measured at the below category options?
Fair value: what happens with transaction costs if there is? Example?
Fair value through pl: transaction cost are added to pl. ok? Example?
Fair value through OCI: what happens with transaction costs?
Amortized cost: what happens with transaction cost?
You have not explained each of them with examples and the need for each category in practice.
What is a transaction cost by the way? would you please provide examples?
When would you classify a financial asset under the initial recognition as fair value through profit and loss?
What is the difference between recognize at fair value incl transaction costs versus fair value through profit and loss as per the notes?
Thank you :-).
Krgrds,
Paula.
If it is FVTOCI then the transaction costs are added to the initial FV.
Thanks