Identify which of the following financial instruments are required under AASB 139 "Financial Instruments: Recognition and Measurement" to measured at amortised cost:

A. I, II and III;
B. I, II and IV;
C. II, III and IV;
D. II, IV and V;
E. III, IV and V.

Question

Identify which of the following financial instruments are required under AASB 139 "Financial Instruments: Recognition and Measurement" to measured at amortised cost:
  
A. I, II and III;
B. I, II and IV;
C. II, III and IV;
D. II, IV and V;
E. III, IV and V.

Quizplus · Accepted Answer

AASB 139 requires financial instruments that meet specified criteria to be measured at amortised cost. These include: (I) financial assets that have fixed or determinable payments and a fixed maturity; (II) financial assets that an entity has the positive intention and ability to hold to maturity; (III) financial assets that are loans and receivables; and (IV) financial liabilities that are not held for trading. Therefore, the correct answer is B, as financial instruments V (equity instruments) and II (financial assets at fair value through profit or loss) are not required to be measured at amortised cost under AASB 139.

Identify Which of the Following Financial Instruments Are Required Under