Ias 39 Regulate About The Recognition And Measurement Financial Asset And Liabilities

1356 WordsDec 12, 20166 Pages
IAS 39 regulate about the recognition and measurement financial asset and liabilities. Under this standard, financial asset classified under four types which are: financial asset valued under fair value, Loan and Receivable (L&R), Available for Sale (AFS), and Hold to Maturity (HTM). Each classification has different treatment of measurement which are under FVA and amortisation. Amortisation of financial asset should applied Effective Interest Method (EIM) which followed the application of discounted rate until. Moreover another FVA should followed has been controversial issues within financial institution. In financial crisis in 2008, IAS 39 has become atrocious issues especially in financial institution. IAS 39 set the rule for recognition and measurement of financial asset and financial Liability. Financial asset is strictly classified under four types which are changes, recognition of loss or gain financial asset under Held to Maturity (HTM), Loans and Receivables (L&R), and Available for sale (AFS). Moreover, financial liability is divided Primarily, financial asset and financial liability under IAS 39 measured through FVA method. However, IAS 39 lined different treatment of measurement under the type of the financial asset and liabilities. For FVPTL, AFS are calculate through FVA method and for L&R and HTM calculate through Amortisastion based on Effective Interest Method In financial crisis in 2008, there was allegation towards accounting standard especially the

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