Measurement – IFRS 9 Financial Instruments StartUp Ltd. acquires corporate bonds in the amount of five million Euro on the capital market and intends to holds the financial instruments for five years until the liquidity is needed to invest in its infrastructure. Assume the financial instruments bear the character of debt instruments categorized in a • mixed business model • at fair value through other comprehensive income Please explain, how StartUp Ltd. needs to measure the financial instruments initially and in subsequent periods
Measurement – IFRS 9 Financial Instruments StartUp Ltd. acquires corporate bonds in the amount of five million Euro on the capital market and intends to holds the financial instruments for five years until the liquidity is needed to invest in its infrastructure. Assume the financial instruments bear the character of debt instruments categorized in a • mixed business model • at fair value through other comprehensive income Please explain, how StartUp Ltd. needs to measure the financial instruments initially and in subsequent periods
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 46BE
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Measurement – IFRS 9 Financial Instruments
StartUp Ltd. acquires corporate bonds in the amount of five million Euro on the capital market and
intends to holds the financial instruments for five years until the liquidity is needed to invest in its
infrastructure.
Assume the financial instruments bear the character of debt instruments categorized in a
• mixed business model
• at fair value through other comprehensive income
Please explain, how StartUp Ltd. needs to measure the financial instruments initially and in
subsequent periods
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