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Financial Instruments
04-03-2006, 03:44 AM
Post: #1
Financial Instruments
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..
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