One of the issues covered by IFRS 9 Financial Instruments (revised July 2014) is the classification and measurement of financial assets. The three possible measurement bases identified by the standard are: 

• Amortised cost. 

• Fair value through other comprehensive income. 

• Fair value through profit or loss. 

Required: 

Explain how IFRS 9 requires entities to select the appropriate measurement basis for a financial asset. You should include any options available to entities regarding classification in your explanation. 

Answer rating: 100% (QA)

Solution Following are choices accessible for elements to pick Where resources are assessed at sensible worth or reasonable worth benefits and misfortunes are either seen totally in benefit or misfort... View the full answer