Which statement is correct about non-strategic financial assets?
A)ASPE refers to the underlying business model when categorizing these investments.
B)IFRS classifies these investments in accordance with legal substance.
C)ASPE classifies these investments in accordance with their nature.
D)The accounting is the same under ASPE and IFRS for these investments.

Question

Quizplus · Accepted Answer

ASPE categorizes non-strategic financial assets based on their nature, such as whether they are held for trading, available for sale, or held-to-maturity. IFRS also has similar categories, but classifies these investments based on their financial characteristics rather than their nature. Therefore, statement B is incorrect. Statement A is also incorrect as ASPE does not consider the underlying business model when categorizing financial assets. Statement D is incorrect as the accounting treatment may differ between ASPE and IFRS for non-strategic financial assets.

Which Statement Is Correct About Non-Strategic Financial Assets