IFRS 9Chapter 5Lesson 1
Classifying a financial asset: three categories and the business model
Step 1 of 7Learning objectives
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A financial asset is measured at amortised cost, at FVOCI or at FVTPL according to two criteria: the business model for managing the asset and the characteristics of its contractual cash flows.
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Learning objectives
- Name the three measurement categories of financial assets.
- Explain the two criteria that drive classification.
- Determine a portfolio's business model from the evidence in the case.
- Interpret past and expected sales without a numerical threshold.