measured at fair value through profit or loss (FVTPL). Designations as at FVTPL shall be made at initial recognition and are irrevocable. The entity need not enter into the assets and liabilities at the same time provided that the time gap Is reasonable and the remaining transactions are expected to occur. This elective classification was introduced because investments in equity instruments (for example ordinary listed shares) would otherwise always be classified as FVTPL. This means that as the relevant share price rises and falls fair value gains or losses would be recognised in ‘profit or loss’ However, ifen entity has no intention to trade in its equity investments, it would generally prefer to present the related fair value gains or losses in ‘other comprehensive income’ so as to avoid its ‘profit or lass’ from being needlessly affected. In this case, the entity may thus prefer to classify its equity instrument as fair value through other comprehensive income (FVOCI equity) instead. Example ‘ABT Ltd's intention in respect of the portfolio of shares is to hold them for a long period as a strategic investment. Because the shares are not held for trading, SABT Ltd is allowed to elect irrevocably to present gains and losses on these equity investments in OCI. This means that SABT Ltd never needs to assess whether the shares are impaired, as it will not be able to record any gains on sale through profit or loss. if SABT Ltd were actively buying and selling the shares with the objective of realising short-term fluctuations in their price, the shares would be held for trading and would be required to be classified ‘and measured at FVTPL. ‘An accounting mismatch may also arise where @ non-financial asset Is measured at fair value and the related financial liability is measured at amortised cost. The amendment allows an entity to designate the related financial liability as at