 Classification & measurements of
Financial Assets & Financial Liabilities
 Initial Recognition
 Subsequent Recognition
Two Categories for
Measurement of Financial
Liabilities
AMORTIZED COST
- includes accounts payable, notes payable,
bonds payable, & deposits
FL @FVPL
- includes:
• liabilities held for trading
• derivatives not part of hedging relationships
• liabilities opted to classify of FV option
Three Categories for
Measurement of Financial Assets
FA @AMORTIZED COST
•for bonds
•investment to hold for maturity category
•trade accounts receivable
•simple loans
•bonds held to maturity
FA @FVOCI
•for bonds & stocks
•investment available for sale category
•gains/losses to be recorded in Other
Comprehensive Income
•may place equity investments of it is not
held for trading
FA @FVPL
•investment held for trading
•IFRS 9'S Residual Category
•includes Financial Assets not qualified to be
measured at Amortized Cost & FVOCI