"Available-for-sale financial assets" is a classification under International Financial Reporting Standards.
KCN do not account for AND as an associate (as they have no significant influence), therefore it is a financial asset.
There are 4 categories that can be used for investments: 1. Financial Asset at fair value through profit or loss 2. Held-to-maturity investments 3. Loans and receivables 4. Available-for-sale financial assets.
The AND shares cannot be classified as 2 or 3. KCN could elect for it to be 1 (which you wouldn't do as it puts volatility through your P&L), therefore it MUST be classified as 4.
Just because it is classified as 4, doesn't mean it is actually for sale.
Regards Marv
AND Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
