Document ID: chunk:federal_register_of_legislation:F2023C00399:body:0:p186
Version: federal_register_of_legislation:F2023C00399
Segment Type: other
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Character Range: 505755–508630

fire that damages or destroys an asset of a party to the contract. A change in the fair value of a non-financial asset is specific to the owner if the fair value reflects not only changes in market prices for such assets (a financial variable) but also the condition of the specific non-financial asset held (a non-financial variable). For example, if a guarantee of the residual value of a specific car exposes the guarantor to the risk of changes in the car's physical condition, the change in that residual value is specific to the owner of the car.

Financial assets and liabilities held for trading
BA.6 Trading generally reflects active and frequent buying and selling, and financial instruments held for trading generally are used with the objective of generating a profit from short-term fluctuations in price or dealer's margin.
BA.7 Financial liabilities held for trading include:
(a) derivative liabilities that are not accounted for as hedging instruments;
(b) obligations to deliver financial assets borrowed by a short seller (ie an entity that sells financial assets it has borrowed and does not yet own);
(c) financial liabilities that are incurred with an intention to repurchase them in the near term (eg a quoted debt instrument that the issuer may buy back in the near term depending on changes in its fair value); and
(d) financial liabilities that are part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit-taking.
BA.8 The fact that a liability is used to fund trading activities does not in itself make that liability one that is held for trading.

Appendix C
Australian implementation guidance for not-for-profit entities

This appendix is an integral part of AASB 9 and has the same authority as other parts of the Standard.  The appendix applies only to not-for-profit entities.

Introduction
C1 AASB 9 Financial Instruments incorporates International Financial Reporting Standard IFRS 9 Financial Instruments, issued by the International Accounting Standards Board.  Consequently, the text of AASB 9 is generally expressed from the perspective of for-profit entities in the private sector.  The AASB has prepared this appendix to explain the principles in the Standard in relation to non-contractual receivables arising from statutory requirements ('statutory receivables') from the perspective of not-for-profit entities in the private and public sectors.  The appendix does not apply to for-profit entities or affect their application of AASB 9.
C2 This appendix provides guidance to assist not-for-profit entities to determine whether particular transactions or other events, or components thereof, are within the scope of this Standard.  If a transaction is outside the scope of AASB 9, the recognition and measurement of the asset and income