[Verse 1] When companies hold financial assets in their hands They need to classify them with accounting standards Three categories help us understand the way Assets are measured at the end of each day [Chorus] Hold to collect, hold and sell, fair value now SPPI test and business model show us how Amortized cost or fair value through the eyes Of income statement, that's where profit lies [Verse 2] If you hold to collect the contractual cash flows And payments are principal plus interest that grows Pass the SPPI test, it's simple and clear Amortized cost is the method you'll hear [Chorus] Hold to collect, hold and sell, fair value now SPPI test and business model show us how Amortized cost or fair value through the eyes Of income statement, that's where profit lies [Verse 3] Hold to collect and sell when timing is right Fair value through OCI keeps the balance sheet bright Unrealized gains and losses will flow To other comprehensive income, now you know [Bridge] Financial liabilities have their own way Amortized cost is how most of them stay But trading liabilities change every day Fair value through profit is how they display [Chorus] Hold to collect, hold and sell, fair value now SPPI test and business model show us how Amortized cost or fair value through the eyes Of income statement, that's where profit lies [Outro] Classification drives the measurement you see Understanding this brings accounting clarity From assets to liabilities, now you can tell How financial instruments are classified well
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