Business model hold to collect and sell

Ok so the financial instrument to classify and measure is a debt instrument and the business model is not to hold to collect.

Based on the overall business, not instrument-by-instrument

Centers on whether financial assets are held to collect contractual cash flows:

  • How the entity is run
  • The objective of the business model as determined by key management personnel (KMP) (per IAS 24 Related Party Disclosures).

Under the ‘hold to collect and sell’ business model, the objective is to both collect the contractual cash flows and sell the financial asset. In contrast to the ‘hold to collect’ business model, sales are integral rather than incidental, and consequently this business model typically involves a greater frequency and volume of sales.

See examples of business models to hold to collect and sell.

The question is: Is the business model ‘Hold to collect and sell’?

Yes / No