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Hi can any one reply to me.
It is confused me also. ‘clasification and measurment’
In kaplan rev kit page 349 last para says- ifrs 9 reduce the number of clasifications of financial assets from four to three. ( is this a measurment change or , clasification changers with refernce to the four catogories)
In the book of IFRS our examinor book page 159 under the last para says- as a result of its deliberations on the first step in the project which has proposed to reduce complexity in accounting for financial instrumrnt s by reducing the number of models of reporting financial instrument s from three to two ( amortised cost & FV)- again this a measurment or about that four catogoris.
I think measurment is two catogory and clasification still 4 as per IAS 39.
Who can explain this please.
Thanks.Hello Nevazi,
My understanding is that classification has gone from 4 categories to 2.
Measurement
Initial – Fair Value
+transaction costs (for financial assets not held at FV through profit or loss)
Subsequent measurement:
1) Business model: debt held to collect cash flows (principal and interest) – amortised costs
2) All others
– Debt or equity held for trading – fair value through profit or loss
– Equity instruments not held for trading – fair value through other comprehensive income
You could say categories are Business model… & All others and measurement is amortised costs & Fair Value….
Hope this helps
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