Business model test

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The (overall) business model test is about whether the asset is part of a group or portfolio that is being managed within a business model whose objective is to hold and collect contractual cash flows from the non-equity financial assets (IFRS 9 measurement at Amortized Cost), or to both collect contractual cash flows from the non-equity financial asset and sell the non-equity financial asset (IFRS 9 measurement at fair value through other comprehensive income, short as FVOCI). Otherwise, the asset is measured at fair value through profit or loss, short as FVPL.

 

IFRS Synonyms:
Business model assessment

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