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    This document outlines the classification, measurement, and accounting treatment of different types of investments. Debt securities can be classified as FVTPL, FVOCI, or AC, depending on the business model and whether contractual cash flows are collected. Equity securities are generally classified as FVTPL or FVOCI, except for significant influence or control interests which have different treatment. Classification is based on fair value or irrevocable designation at FVTPL or FVOCI.

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    This document outlines the classification, measurement, and accounting treatment of different types of investments. Debt securities can be classified as FVTPL, FVOCI, or AC, depending on the business model and whether contractual cash flows are collected. Equity securities are generally classified as FVTPL or FVOCI, except for significant influence or control interests which have different treatment. Classification is based on fair value or irrevocable designation at FVTPL or FVOCI.

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    4 views1 page

    Investment

    Uploaded by

    gummydummy5678
    This document outlines the classification, measurement, and accounting treatment of different types of investments. Debt securities can be classified as FVTPL, FVOCI, or AC, depending on the business model and whether contractual cash flows are collected. Equity securities are generally classified as FVTPL or FVOCI, except for significant influence or control interests which have different treatment. Classification is based on fair value or irrevocable designation at FVTPL or FVOCI.

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    INVESTMENT

    COMPOSITION INITIAL MEAS SUBSEQ MEAS ∆FV (UG/UL)


    FVTPL D/E FV FV P/L
    FVOCI D/E FV + TC FV OCI
    AC D PV + TC TC

    ① DEBT SECURITIES ⇾ creditor-debtor relationship


    BM / PLAN
    Classification SELL COLL CCF (P+INTofOSPB)
    FVTPL (held 4 trading)   near future ⨯
    FVOCI  ⨯ near future 
    AC ⨯ 

    ② EQUITY SECURITIES ⇾ part-owner relationship


    BM / PLAN
    Classification SELL HOLD
    FVTPL   near future 
    FVOCI  ⨯ near future 
    Reason: SIG INF or CONTROL ⨯ 

    Pref Sh Ord Sh
    < 20% FVTPL / FVOCI FVTPL / FVOCI
    >20% - 50% FVTPL / FVOCI SI: IIA (PAS2)
    >50% FVTPL / FVOCI CONROL: IIS (PFRS3)

    CLASSIFICATION BASED ON FV OPTION:


    a) Designated @ FVTPL
    b) Irrevocably designated @ FVOCI

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