AASB 139 stipulates how financial instruments are to be recognised and measured.Specifically these instruments could be:
A. Recorded at their fair value with any changes included in the period's profit or loss unless the instrument was acquired as a hedge.
B. Recorded at fair value with any changes recorded directly to equity and only transferred to profit when the asset is derecognised.
C. Measured and amortised at cost using the effective interest method.
D. All of the given answers.
E. Recorded at fair value with any changes recorded directly to equity and only transferred to profit when the asset is derecognised and measured and amortised at cost using the effective interest method.

Question

Quizplus · Accepted Answer

AASB 139 allows for different treatments of financial instruments, including fair value through profit or loss, fair value through other comprehensive income, and amortised cost, but not all options listed are simultaneously applicable to all instruments.

AASB 139 Stipulates How Financial Instruments Are to Be Recognised