Charles plc is applying IAS 32 and IAS 39 for the first time this year and is uncertain about the application of the standard. Charles plc balance sheet is as follows:

Note
1. The forward contracts have been revalued to fair value in the balance sheet. They do not qualify as hedging instruments.

Required:
For the above balance sheet consider whether, under the IAS 39:
(i) Which items on the balance sheet are financial assets/liabilities?
(ii) Are the balances within the scope of IAS 39?
(iii) How they should be classified under IAS 39:
HTM Held to maturity
LR Loans and receivables
FVPL Fair value through profit and loss
AFS Available for sale
FL Financial liabilities
(iv) How they should be measured under IAS 39:
FV Fair value
C Amortized cost
Assume that the company only includes items in €˜fair value through profit and loss€™ when required to do so and also chooses where possible to include items in €˜loans andreceivables€™.

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AS CategoryMeasurement sset/iabiliy 321392 Non-current assets Intangible Tangible 2,000 3,000 6,000 Corporate bond Equity trade investments ,500 900 3,400 Current assets 800 700 300 Prepayments Forward contracts (note 1) Equity investments 250 held for future sale ,200 Current liabilities Trade creditors Lease creditor Income tax Forward contracts (3,500) (1,000) (note 1) (5,800) Non-current liabilities Bank loan Convertible debt Deferred tax Pension liability (5,000) (1,800) (500) 8,2 2,650 Net assets