Gains and losses on assets at FVTPL

Learning objectives

• Record in profit or loss the changes in fair value of a financial asset measured at fair value through profit or loss.L1

Normative references

• IFRS 9 §5.7.1A gain or loss on a financial asset or financial liability measured at fair value is recognised in profit or loss unless it is part of a hedging relationship, it relates to an investment in an equity instrument for which the election in para. 5.7.5 has been made, it is a liability designated at FVTPL whose own credit risk effect is presented in OCI under para. 5.7.7, or it is an asset at FVOCI under para. 4.1.2A some of whose changes are recognised in OCI under para. 5.7.10. Para. 5.7.1A sets the conditions for recognising dividends in profit or loss.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• Rhéa SA holds an investment measured at fair value through profit or loss. Its fair value moves from {opening_fair_value} to {closing_fair_value} at the reporting date. Record the remeasurement entry.L1
• The fair value changes of a financial asset measured at fair value through profit or loss are presented in other comprehensive income.L1