CERTYNEX IFRS ACADEMY

Kappa SA manages a portfolio of bonds whose performance is evaluated and monitored on a fair value basis. The contractual cash flows of these bonds are payments of principal and interest. Which measurement category applies?

Fair value through other comprehensive income, because the cash flows are SPPI and the portfolio is evaluated at fair value.

Amortised cost, because the contractual cash flows are payments of principal and interest.

Fair value through profit or loss: a portfolio managed at fair value is not held to collect the cash flows.

Fair value through other comprehensive income, by an irrevocable option chosen at initial recognition.