Question

Since 2009, with the release of IFRS 9, which covers the classification/ measurement of financial assets, which is also known as phase I of the replacement of IAS, the IASB is seeking to move the valuation of financial instruments closer to:

Answer 1

Amortized Value

Step-by-step explanation:

On 12 November 2009, IFRS 9 which deals with Financial Instruments was issued, covering Classification and Measurement of financial assets. This replaced IAS 39 : Financial Instrument Recognition and Measurement.

The new standard, IFRS 9 divides all financial instruments that are currently within the scope of IAS 39 into two classifications which are (1) those measured at amortized cost and (2) those measured at fair value.

Therefore, the IASB is seeking to move the valuation of financial instruments closer to Amortized Value.