Question
Investment in debt instrument for which the company has
intention to receive contractual cash flows and for which, the debt gives contractual cash flows for principal and interest, will be classified as per which among the following methods?Solution
Financial assets held: § to collect contractual cash flows and § represent the financial asset of cash flows that are solely payments of principal and interest on the principal amount outstanding § Treatment · initially measured at fair value and · subsequently at amortised cost.
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