CFM16115 - Accounting for financial
instruments: IAS 32 and IAS 39: classification of financial
assets
Overview
IAS 39 requires financial assets to be classified in one of the
following categories:
- Financial assets at fair value through
profit or loss (FVTPL) –
CFM16120 onwards;
- Available-for-sale financial assets (AFS)
–
CFM16140;
- Loans and receivables (L&R) –
CFM16135; and
- Held-to-maturity investments (HTM) –
CFM16125
These categories are used to determine how a particular
financial asset is recognised and measured in the financial
statements.
This section examines the categories in more detail, and also
explains when assets might be reclassified.
