AC2101 S1 2014 Seminar 8 FA.pptx

G 3 months before maturity holder collected

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: from the ISSUER’s perspective 9 28/8/13 Fair Value thru P&L: Reclassification Note: *  “Reclassification in or out” is not allowed (FRS39:50) *  Effective 1 July 2008, FRS39:50B allows reclassification out of FVPL only in rare circumstances *  The fair value of the financial asset on the date of reclassification becomes its new cost or amortised cost, as applicable. (FRS39:9) 19 Held- to- Maturity (HTM) These are investment in debt securities which the entity has the intention and the ability to hold until maturity date (FRS 39:9) Assessment of intention and ability to be done at *  date of recognition and *  each subsequent B/S date (FRS 39:AG25) 10 28/8/13 Held- to- Maturity (HTM) Bond accounting (Terminology) *  Bond issued at par, discount or premium *  Coupon vs. effective interest rate *  Present value computation *  Quoted prices of bonds *  Effective interest rate method 21 Held- to- Maturity (HTM) §༊  Upon recognition Ø།  Fair value + transaction costs (FRS39:43) §༊  At B/S da...
View Full Document

This document was uploaded on 02/10/2014.

Ask a homework question - tutors are online