A financial asset classified as fair value through profit and loss (FVTPL) must be:
I$\quad$ a derivative that is a financial guarantee contract or a hedging instrument
II $\quad$acquired princip ally for the purpose of selling it in the near term
III$\quad$ part of a portfolio of identified instrument that are managed together and for
$\quad$$\quad$which there is evidence of a recent actual pattern of short-term profit-taking
IV $\quad$designated as such upon initial recognition

Question

A financial asset classified as fair value through profit and loss (FVTPL) must be:
I$\quad$ a derivative that is a financial guarantee contract or a hedging instrument 
II $\quad$acquired princip ally for the purpose of selling it in the near term 
III$\quad$ part of a portfolio of identified instrument that are managed together and for 
$\quad$$\quad$which there is evidence of a recent actual pattern of short-term profit-taking 
IV $\quad$designated as such upon initial recognition

Quizplus · Accepted Answer

A financial asset is classified as FVTPL if it is acquired for selling in the near term, part of a portfolio managed for short-term profit-taking, or designated as such upon initial recognition.

A Financial Asset Classified as Fair Value Through Profit and Loss