AC2101 S1 2014 Seminar 8 FA.pptx

Portfolio with evidence of short term prot taking or a

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Unformatted text preview: recognition §༊  Before 1/1/06 - any financial asset can be designated as FVPL except equity securities whose fair value cannot be reliably measured §༊  After 1/1/06 – only under restricted circumstances (see NCKL pp. 619) 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) *Hedge accounting will be covered in AA306/AC3102 8 4 28/8/13 Held for Trading (FRS 39:9) A financial asset is held for trading if it is Ø།  Acquired for selling in near term, or Ø།  Identified as part of a portfolio with evidence of short- term profit- taking, or Ø།  A derivative 9 Financial...
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This document was uploaded on 02/10/2014.

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