IAS 39 divides these financial instruments into the categories of “financial asset at fair value through profit or loss,” “held to maturity,” “available for sale” or “loans and receivables.” Investments are classified as “financial asset at fair value through profit or loss” if their fair value can be measured reliably. If this is not possible, investments are categorized as “available for sale” and measured at historical costs.
Loans are credits that are classified as “loans and receivables” according to IAS 39. Measurement in subsequent periods is at amortized cost using the effective interest rate method.
