Held for trade investments - IFRS

As per IAS 39, Held for trade investment instruments are required to be fair valued through P&L.

Please read IAS 39, All your confusion will be clear.

When you will read than read IAS 32, IAS 39 and IFRS 7 together. All this standards are deals with derivatives

Condition for Classifying a Financial Assets as HFT :

 A financial asset is considered to be held for trading if the entity acquired or incurred it principally for the purpose of selling or repurchasing it in the near term or is part of a portfolio of financial assets subject to trading

Journal Entries :

 At the time of initial purchase

Dr Financial assets at fair value through profit or loss 55,000

Cr Cash 55,000

When Prices gone up

Dr Financial assets at fair value through profit or loss 7,000

Cr Profit or loss 7,000

At the time of Sale

Dr Cash 62,000

Cr Financial assets at fair value through profit or loss 62,000

2nd entry will be pass on the month end.. because in the books we need to book the loss or profit as per market rate.. because financial instrument bel in market to market

Thank you.
 

its ok no issue