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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › money derivatives
Sir when deciding whether to categorise bonds or derivatives held by an entity as FVPL what is the necessary condition, that it should be held for trading purposes(which could mean owning long term bonds) or that it should be short term(which could mean owning bonds whose term to maturity isn’t more than certain no.of years, say 5yrs)?
Derivatives – always FVPL
Bonds – usually FVOCI (unless to correct accounting mismatch – e.g. borrow money to finance investment property)
