CERTYNEX IFRS ACADEMY

Élodie SA invests 100,000 in bonds issued by another company. How is this investment classified in Élodie's accounts?

As a financial asset, assessed from the holder's point of view.

As a financial liability, since the bonds were issued by a company that has to repay the holders.

As an equity instrument, since Élodie takes part in the financing of the issuing company.

As an item outside the scope of the definition, since the other company is a third party.