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For example a Company purchases 1000 equity instruments of A Co. in the 1st Year, does not sell it in the first year but towards the end of the second year sells just 200 out of these instruments. How do we classify these? Held for trade or Available for sale?
in IAS 39 - Financial Instruments: Recognition and Measurement by

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An equity investment should be classified as held for sale if it is expected to be sold within one year from date of purchase. However if the company is unable to sale it due to decrease in its market value (selling at price which will result in loss), the company can still contiunue to classify this investment as held for trading. If we pay close attention to wording of IAS-39 it say "Expected" to sold and not "Must" be sold.Therefore a company can continue to classify its investment as held for trading if it is unable to sell it in time. 

Another example which explains this situation is where Company has as portfolio of investments in equity securities and trade them regularly however any one or few securities are not traded due to any reasons mentioned above. In this situation company may continue classifiying its investments as held for trading.

by Level 1 Member (2.3k points)
Proper documentation and proper processes followed at the time of purchase may help to demonstrate that the shares were HFT


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