After the initial purchase, financial assets can be reported using one of six measurement bases under IFRS:
Consolidation……………………………………fair value with changes through income
Proportionate consolidation……………………..fair value with changes through OCI*
Equity method…………………………………...amortized cost
Required:
For each of the following financial assets, identify the appropriate measurement basis according to IFRS.
Measurement basis
a. Shares classified as held for trading.
b. Bonds classified as available for sale.
c. Bonds classified as held to maturity.
d. Investment in an associate.
e. A derivative on foreign currency.
f. A subsidiary.
g. Shares classifies as available for sale.
h. Investment in a joint venture.