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Under Ind AS 109, financial assets HELD FOR TRADING include:
AAssets acquired principally for sale/repurchase in the near term, part of a portfolio managed for short-term profit-taking, OR derivatives (except financial guarantees and designated hedges)
BAny asset listed on a recognised stock exchange
CAny asset whose fair value changes by more than 10% during the year
DAny asset with a contractual maturity of less than one year
Answer & Solution
Correct answer: A. Assets acquired principally for sale/repurchase in the near term, part of a portfolio managed for short-term profit-taking, OR derivatives (except financial guarantees and designated hedges)
The held-for-trading definition rests on the entity's PURPOSE/PORTFOLIO MANAGEMENT, not on the asset's exchange listing, volatility, or maturity. Listing, volatility, and maturity don't drive classification.
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