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 the underlying business model.
C)IFRS 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

IFRS classifies non-strategic financial assets based on the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. This approach is distinct from ASPE, which does not primarily focus on the business model for classification.

Which Statement Is Correct About Non-Strategic Financial Assets