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Diploma in IFRS: IFRS 9 in practice

IND AS 109 requires an understanding of how to use amortized cost under the business model test. The Business Model test is the standard way to identify the accounting treatment for Financial Assets. The test does not require an entity to check the application of amortized cost on an asset-by-asset level, but permits the management of the entity to apply the model at a portfolio level. This is one standard that clearly requires the application of "Intention" rather than other accounting concepts and principles like Prudence or Conservatism.

#INDAS #FinancialInstruments #AccountingStandards