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Ask the Tutor ACCA SBR

IFRS 9

TThomas8y ago
Sir can you please explain the default classification for a debt asset as well as the subsequent measurement.
P2-D2P2-D2Tutor8y ago#1
For debt instruments the default treatment is FVTOCI, unless the fair value option is chosen. If it meets the business model test and contractual cash flow test then it will be treated as amortised cost.
TThomas8y ago#2
But sir, isn't FVTPL the default classification for all financial assets?
P2-D2P2-D2Tutor8y ago#3
FVTPL is the default for equity instruments.
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