3. Financial Instruments: Financial Assets and Financial Liabilities

e. describe different types of assets and liabilities and the measurement bases of each;

What are some financial assets that are measured at fair market value? - Financial assets held for trading. - Available-for-sale financial assets. - Derivatives (whether stand-alone or embedded in non-derivative instruments). - Non-derivative instruments with fair value exposures hedged by derivatives.

What are some financial liabilities measured at fair market value? - Derivatives. - Financial liabilities held for trading. - Non-derivative instruments with fair value exposures hedged by derivatives.

What are some financial assets that are measured at cost or amortized cost? - Unlisted instruments (there is no reliable valuation measure). - Held-to-maturity investments (bonds). - Loans and receivables.