IAS 39 stipulates how financial instruments are to be recognised and measured.Specifically these instruments could be:

Question

Quizplus · Accepted Answer

IAS 39 instructs that financial instruments should be recognised and measured at fair value or amortised cost using the effective interest method, depending on their classification. If an instrument is recognised at fair value, any changes in value should be included in the profit or loss for the period. However, if the instrument is acquired as a hedge, changes in value may be recorded directly in equity until the hedge expires or is otherwise disposed of. Therefore, options A, B, and C are all correct methods of measuring financial instruments under IAS 39.

IAS 39 Stipulates How Financial Instruments Are to Be Recognised