Equity Instruments - Debt Instruments

Equity Instruments

Debt Instruments

FA @ FVPL

FA @ FVOCI

FA @ FVPL

FA @ FVOCI

FA @ AC

Nature of instrument

Trading securities AND nontrading securities for which the entity exercised its option to classify as at FVPL.

ONLY nontrading securities for which the entity exercised its option to classify as at FVOCI.

Debt instruments PRIMARILY held for trading.

Debt instruments acquired for BOTH trading AND collection of contractual cash flows which are solely payments of principal and interest.

Debt instruments acquired with the objective of collecting contractual cash flows which are solely payments of principal and interest.

Initial recognition

Purchase price ONLY

Purchase price + transaction costs

Purchase price ONLY

Purchase price + transaction costs

Purchase price + transaction costs

Subsequent measurement

At FV, w/changes in FV taken to P&L.

At FV, w/changes in FV taken to OCI.

At FV, w/changes in FV taken to P&L.

At amortized cost, w/changes in FV taken to OCI (use FV adjustment account to accumulate changes in FV).

At amortized cost.

Income earned

Dividend income

Dividend income

Interest income (at stated rate)

Interest income (using effective interest)

Interest income (using effective interest)

Upon disposal/ derecognition

Gain/loss: SP less FV on last remeasurement date

Update FV using SP, with the change in value recognized in OCI. The cumulative change in value (i.e. unrealized gain or loss) shall remain in equity (e.g. RE) and no amount shall be recognized in P&L.

Gain/loss: SP less FV on last remeasurement date

Update first the amortized cost. Then update CV (amortized cost +/- FV adjustment) using SP, with the change in value recognized in OCI. The balance of FV adjustment account (which must be equal to the OCI account) right before the sale shall be the gain/loss on sale w/c is taken to P&L.

Gain/loss: SP less CV of instrument on date of sale.