IFRS 9

This topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.

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April 11, 2023 at 11:21 am #682512
akka17bakka
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Hello,

I have a question regarding Financial Asset classification, why would an entity choose to opt for amortised cost method and not fair value?

Thanks.
April 11, 2023 at 6:47 pm #682524
Stephen Widberg
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Avoids volatility in SFP. For example, as interest rates rise bond values will fall. More comfortable to use cost accounting. (as with fixed assets!)
April 12, 2023 at 6:40 pm #682556
akka17bakka
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Thank You, Sir.
April 13, 2023 at 9:24 am #682577
Stephen Widberg
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🙂
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