At initial level all financial instruments are calculated at fair value plus or minus under IFRS 9. The financial assets and liability not at fair value through profit or loss. Transaction costs. This requirement is consistent with IAS 39.
Classification on assets under three headings by IFRS 9:
- Financial assets at fair value through profit or loss
- Financial assets at fair value through other comprehensive income
- Financial assets measured at amortized cost
IFRS 9 classifies financial liabilities as follows:
- Financial liabilities at fair value through profit or loss: these financial liabilities are subsequently measured at fair value and here, all derivatives belong.
- Other financial liabilities measured at amortized cost using the effective interest method.
IFRS 9 seeks to develop financial reporting standards for financial assets and financial liabilities that will provide accurate and useful information to consumer of financial statements for their evaluation of the amounts, timing and volatility of potential cash flows of the company.