Answer the following question:

1. Investment in 10-year bonds. Bonds were purchased when interest rates were high. Rates are expected to decline, and when this happens the bond will be sold.

IFRS: FVTPL

ASPE: AC

2. Investment in 10-yaer bonds with the intention to hold until maturity. However, if bond prices rise the bonds will be sold.

IFRS: FVOCI - Debt

ASPE: AC

3. Investment in 10-year bonds with the intention to hold until maturity.

IFRS: AC

ASPE: AC

4. Shares in a publicly traded company. Management intends to have all gains and losses bypass earnings.

IFRS: FVOCI

ASPE: Fair Value

5. Shares in a publicly traded company. Management holds this as part of a portfolio that they buy and sell shares for appreciation purposes.

IFRS: FVTPL

ASPE: Fair Value

Why do we use for instance FVTPL under IFRS but AC for ASPE? Explain each example for both IFRS and ASPE. Are there any rules to follow when deciding which method to use for IFRS and ASPE? If possible provide a list of what can be used under IFRS and what can be used under ASPE.