International GAAP 2012: Generally Accepted Accounting Practice under International Financial Reporting Standards

Chapter 46

Financial instruments: Classification (IAS 39)

1 Introduction

2 Assets and Liabilities at Fair Value Through Profit or Loss

2.1 Assets and liabilities held for trading

2.2 Instruments designated at fair value through profit or loss

2.2.1 Designation eliminates or significantly reduces a measurement or recognition inconsistency (accounting mismatch) that would otherwise arise

2.2.2 A group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis

2.2.3 Instruments containing embedded derivatives

3 Held-to-Maturity Investments

3.1 Instruments that may be classified as held-to-maturity

3.2 Positive intention and ability to hold to maturity

3.3 The tainting provisions

4 Loans and Receivables

5 Available-for-Sale Assets

6 Reclassifications

6.1 Reclassifications to or from fair value through profit or loss

6.1.1 Reclassifications from held for trading

6.1.1.A Reclassifications to loans and receivables

6.1.1.B Reclassifications in rare circumstances

6.1.1.C Prohibited reclassifications

6.1.2 Re-designation and de-designation of derivatives as hedging instruments

6.1.3 Changes in accounting policy for insurance contracts

6.2 Reclassifications between available-for-sale financial assets and loans and receivables

6.3 Reclassifications between held-to-maturity investments and available for sale financial assets

7 Classification of Financial Instruments in a Business Combination

8 Future Developments

List of examples