AC2101 S1 2014 Seminar 8 FA.pptx

Any asset that is a cash b an equity instrument of

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Unformatted text preview: hare investments (FRS 39; IFRS 9) Focus of this seminar: FRS 39 AA306/AC3102 4 2 28/8/13 Financial Instruments: Recognition FRS 39 requires ALL financial assets and financial liabilities (later seminars) (including all derivatives) to be recognized on the statement of financial position (balance sheet) (FRS 39:9) 5 What is a financial Asset? Any asset that is a.  Cash b.  An equity instrument of another entity c.  A contractual right to §༊  Receive cash or another financial asset from another entity §༊  Favorably exchange financial assets/liabilities with another entity d.  A contract to be settled in the entity’s own equity instruments (FRS 32:11) 3 28/8/13 Financial Assets’ Classification Financial assets can be grouped into 4 types: a.  Fair value through P&L (FVPL) b.  Held- to- maturity investments (HTM) c.  Loans & receivables (L&R) - to be covered in the next seminar d.  Available- for- sale financial assets (AFS) (FRS 39:9) 7 Fair Value through P&L a.  Held for trading securities (HFT) §༊  Includes derivatives not used as hedging* instrument b.  Designated by the entity upon initial...
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This document was uploaded on 02/10/2014.

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