In simple words.. where we have the contractual right to receive the principal + interest amount both.( that is debt investment only)
investment in equity and another derivate instrument is not included in the definition of financial asset which is carried at amortised cost because CCFT and SPPI test are fail.
Is any asset I) Cash II) an equity instrument of another entity III) a contractual right: * to receive cash or another financial asset from another entity * any exchange that are potential favourable to the entity
CAclubindia
