Which financial asset classification best describes the business model that includes acquiring portfolio investments in debt securities with the intent to collect contractual cash flows to which it is entitled and profit from the change in value?
A)Associate.
B)Amortized cost.
C)At fair value through other comprehensive income.
D)At fair value through profit or loss.

Question

Quizplus · Accepted Answer

The business model described involves holding debt securities to collect contractual cash flows and also to profit from changes in value, which aligns with the classification "At fair value through other comprehensive income."

Which Financial Asset Classification Best Describes the Business Model That