Financial Asset at Fair Value

For Trading (By

Requirement)
Nature

Acquired Principally for the

purpose of selling or
repurchasing it near term.
Could either be Equity or
Debt Instruments

Initial Recognition

Subsequent Measurement
Classification

Quoted equity
instrument (By
Consequence)

Could either be Equity or

Debt Instruments

At FAIR VALUE ; Transaction

Cost is expensed outright

At FAIR VALUE ;
Transaction Cost is
expensed outright -Same-

Fair Value
Current Assets

Fair Value
Current Assets

By Irrevocable
Designation present in
OCI
Investments by
irrevocable election to
present in OCI
Equity Instrument

Fair Value plus

Transaction Cost directly
attributable to the
acquisition
Fair Value
Noncurrent asset

Financial Asset at
Amortized Cost
Debt Investment qualifying
amortized cost

Debt Investment not

qualifying amortized cost
(By Default)
Conditions to be met:
Conditions to be met:
a. The business
a. The business model
model is
is to hold the
achieved both by
financial asset in
collecting
order to collect
contractual cash
contractual cash on
flows and by
specified date.
selling the
financial asset.
b. The contractual
b. The contractual
cash flows are
cash flows are
solely payments of
solely payments
principal and
of principal and
interest on the
interest on the
principal
principal
outstanding.
outstanding.
Debt Instrument (e.g.
BONDS)

Debt Instrument (e.g.

BONDS)

Fair Value plus

Transaction Cost directly
attributable to the
acquisition -SameFair Value

Fair Value plus Transaction

Cost
Amortized Cost
Generally Noncurrent asset
except if collections are
made within 12 months
then Current asset.

Unrealized Gain/ Loss

Derecognition (Realized
Gain or Loss)

Profit or Loss

Carrying AmountConsideration
received=Gain or Loss
recognized under P/L

Profit or Loss

Carrying AmountConsideration
received=Gain or Loss
recognized under P/L

OCI

OCI

(Cumulatively presented
in Statement of Changes
in Equity)
Cumulative OCI is
transferred to Retained
Earnings.

(Cumulatively presented
in Statement of Changes
in Equity)
Cumulative OCI is
transferred to Retained
Earnings.

(Amount recognized in
OCI is not reclassified to
P/L under any
Circumstances)

(Amount recognized in
OCI is not reclassified to
P/L under any
Circumstances)

NONE

Sold Prior to the Date of

Maturity, amortization
should be up to date and
difference of the Carrying
amount and selling price is
either Gain or Loss
recognized at P/L.
If between interest dates,
the Selling price normally
includes the accrued
Interest.