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| Date Submitted | 22-Jul-10 |
|---|---|
| Category | Financial Accounting & Reporting |
| Heading | AASB 7 Para 9 |
| Question | How do we understand "if the entity has designated a loan or receivable as a fair value through profit or loss? could you please give an example? thanks |
| Answer | Under AASB 139 para 9 financial instruments are required to be classiifed as At Fair Value Through the Profit and Loss if they are being held for trading. In addition, an entity may designate a financial asset or liabilty at inception as being At Fair Value Through the Profit and Loss if it would result in more relevant information. AASB 7 para 9 is stating the disclosure requirement where an item has been designated as At Fair Value Through the Profit and Loss. |