Figure 7.18 shows a liquid-level system in which two tanks have cross-sectional areas A1 and A2, respectively. The volume flow rate into tank 1 is qi. A pump is connected to the bottom….
How should High Performance account for portfolios A and B in accordance with AASB 9?
High Performance Investment Fund holds two main portfolios of debt securities. Both
portfolios provide cash flows that meet the test of being solely payments of interest and
principal in IFRS 9. Securities held in portfolio A are sold on a regular basis based on
movements in the prices of the securities in the portfolio. Securities held in portfolio B are
also sold, but only when there has been a decline in the credit rating of the relevant issuer
OR in certain other limited circumstances.
How should High Performance account for portfolios A and B in accordance with