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Financial Instruments - Ali Akbar - 04-03-2006 IAS 32, classifies financial assets according to their treatment under the following headings i) Fair value through profit & loss account for example shares,securities,derivatives (options, futures etc) ii) Held to maturity e.g buying redeemable debentures iii) Loans & receivables e.g debtors, loans etc iv) Available for sale unqouted securities Now, I would like to ask a question from seniors that as the treatment of initial & subsequent measurment of held to maturity and loan and receivables is same (i.e initial measurement at fair value plus transaction cost and subsequent measurment at amortized cost for both classifications), then why there is a need to classify them separately? Anticipating responses from seniors. ICAPians, the unparalleled.. |