Page 438 - SBR Integrated Workbook STUDENT S18-J19

Chapter 25

Example 6

Measuring debt investments

The financial assets are debt instruments whose interest payments adequately
compensate for credit risk and the time value of money. The contractual cash
flow characteristics test is therefore passed.

Konsult’s business model is to both hold financial assets until maturity but also
to benefit from sales.

Based on the above, the financial assets should be classified to be measured
at fair value through other comprehensive income.

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