[Verse 1] Three buckets wait to sort your assets clean Amortized cost where simple interest gleams Fair value through OCI's the middle ground Fair value through profit loss spins around But first you need to test the business model Does management collect or trade and throttle [Chorus] Hold to collect, that's amortized cost SPPI test passed, no complex sauce Hold and sell both, that's FVOCI Solely payments, principal and interest free Everything else goes FVTPL Classification matters, ring the bell [Verse 2] Business model looks at management's intent Are they holding bonds until they're spent Or do they sell before maturity Trading actively for liquidity The entity level drives this crucial test Past sales patterns reveal what works best [Chorus] Hold to collect, that's amortized cost SPPI test passed, no complex sauce Hold and sell both, that's FVOCI Solely payments, principal and interest free Everything else goes FVTPL Classification matters, ring the bell [Bridge] Contractual cash flows take the stage SPPI means the terms won't rage Principal payments plus interest earned No leverage features overturned Embedded derivatives complicate Push assets to fair value's gate [Verse 3] Equity instruments default to FVTPL Unless you make the OCI election well Irrevocable choice at recognition No recycling through profit's jurisdiction Debt securities need both tests to pass Otherwise fair value holds the class [Final Chorus] Hold to collect, that's amortized cost SPPI test passed, no complex sauce Hold and sell both, that's FVOCI Solely payments, principal and interest free Everything else goes FVTPL IFRS 9's got stories to tell
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