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  • Applied Auditing Investment

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    Philip Dan Jayson Laroza
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    This document outlines the classification process for financial assets based on contractual cash flow characteristics and business models. Financial assets that pass the contractual cash flow characteristics test and are held to collect contractual cash flows and sell are measured at amortized cost. Assets that fail this test but have a fair value option elected are measured at fair value through profit or loss, and those with a fair value option elected are measured at fair value through other comprehensive income.

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    Applied-Auditing-Investment

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    This document outlines the classification process for financial assets based on contractual cash flow characteristics and business models. Financial assets that pass the contractual cash flow characteristics test and are held to collect contractual cash flows and sell are measured at amortized cost. Assets that fail this test but have a fair value option elected are measured at fair value through profit or loss, and those with a fair value option elected are measured at fair value through other comprehensive income.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    12 views2 pages

    Applied Auditing Investment

    Uploaded by

    Philip Dan Jayson Laroza
    This document outlines the classification process for financial assets based on contractual cash flow characteristics and business models. Financial assets that pass the contractual cash flow characteristics test and are held to collect contractual cash flows and sell are measured at amortized cost. Assets that fail this test but have a fair value option elected are measured at fair value through profit or loss, and those with a fair value option elected are measured at fair value through other comprehensive income.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 2

    Auditing

    Classification of Financial Assets


    Investment in Investment in
    Derivatives Equity Securities
    Debt Securities

    Contractual Cash Flow Characteristics’ test


    Pass Fail Fail

    Yes
    Ye
    To collect contract cash flows s Held for Trading?
    and sell financial assets
    No No
    No
    Fair value option Yes
    FVOCI option
    elected elected?
    No Ye
    s

    Financial Asset @ Financial Asset @ FV Financial Asset @ FV


    Amortized Cost Thru P/L Thru OCI

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