. Financial Instruments

Scenario	Classificationof investment	Balance Sheet Presentation	Initial measurement	Subsequent Measurement
An entity acquires debt securities that it will hold until maturity to collect cash flows in the form of principal and interest. However, the entity will sell the securities if the credit risk becomes high to minimize losses or when a worst-case scenario occurs.
An entity holds financial assets (debt securities) to meet its everyday liquidity needs and to settle maturing liabilities. The entity actively manages its liquidity and, therefore, actively manages the return on the portfolio. Accordingly, the entity holds financial assets to collect cash flows and sell financial assets to reinvest in higher- yielding financial assets. Also, the entity frequently buys and sells financial assets to better match the duration of its liabilities.
An entity holds financial assets to sell them to realize fair value gains.