LEARNING OBJECTIVES
After studying this chapter you will be able to get a grasp of the following:
- Meaning and definition of fixed income securities
- Classification of debt securities as “fair value through profit or loss”
- Accounting for fixed income securities in light of relevant accounting standards
- Trade life cycle of fixed income security investments held for trading purposes
- Accounting journal entries to be recorded during the different phases of the trade life cycle
- Illustration of accounting for investments in fixed income securities held for trading purposes
- Preparation of general ledger accounts
- Preparation of income statement, balance sheet after the bond investments are made
- Disclosure requirements for investments in fixed income securities
- FX revaluation and FX translation process
- Functional currency, foreign currency and presentation currency
- Distinction between capital gain and currency gain in unrealized gain
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