Financial Liabilities

 What is the initial recognition for fin liabilities?

o Initially recognized at FV less transaction costs
o Transaction costs recorded as an expense in P/L
 What is the journal entry for initial recognition?

DR Bank

CR Financial Liability

 What is the subsequent measure for financial liabilities?

If held for trading=through P/L

If it will be kept= amortised costs

 When can a fin lib be classified as amortised cost?

to be classified as amortised cost, must comply with the business model test

 What is the journal for opening balance?

Dr Bank

Cr Fin Liability

 What is the journal for interest?

Dr Finance Cost (P/L)

Cr Financial Liability

 What is the subsequent measure for financial liabilities?

If held for trading=through P/L

If it will be kept= amortised costs

 When can a fin lib be classified as amortised cost?

to be classified as amortised cost, must comply with the business model test

 What is the journal for opening balance?

Dr Bank

Cr Fin Liability
 What is the journal for interest?

Dr Finance Cost (P/L)

Cr Financial Liability

 What is the journal for repayment?

Dr Financial Liability

Cr Bank

 Where does the closing balance go?

Amortised Cost in the SFP

 Are liabilities held for trading FVPL financial liabilities?

Yes

 Are loss making derivatives FVPL financial liablities?

Yes