Financial instruments - measurement options

The idea is that: 1. Long term investments in shares are measured at FV, and gains go to OCI (a bit like revaluing PPE) 2. Short term investments in shares are measured at FV, and gains go to P&L (a bit like other current assets) 3. Most debt uses the cost model - however, if the debt is listed on a Stock Exchange, it can be measured at FV And that's all there is - you are correct that using amortised cost means that gains and losses on debentures will end up in P&L Tax - ask a tax tutor!

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