Held for trading
The definition also covers certain instruments in a portfolio managed together with evidence of a recent pattern of short-term profit-taking, and derivatives other than specified exceptions. Held-for-trading classification influences measurement and prevents the IFRS 9 election to present eligible equity-investment gains in OCI. Do not confuse financial assets held for trading with non-current assets classified as held for sale under IFRS 5.
Worked example
A dealer buys listed shares to sell them within days to profit from price movements. The shares are held for trading and are generally measured at fair value through profit or loss under IFRS 9.
Common mistake
Applying the IFRS 5 held-for-sale test to a trading securities portfolio, or electing FVOCI for a held-for-trading equity investment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |