 Let us see a practical question. During 2020, a limited acquire and incur these financial assets and liability. We are trying to see in this question how to recognize assets, liability or equity in the beginning when we have issue. A debt security that is held for trading is purchased for 50,000 and the transaction cost rupees 200. You purchase, do remember you purchase, so it is your asset. So, when you sell a debt security, it is a liability, but when you buy it, it is a asset. Similarly, equity security is classified as fair value through profit and loss account are purchased for 20 and the dealer fee paid 375. You can buy some company shares, so that is the part of equity because it is your assets, investments, but the other side, the liability side, it is not a liability, it is equity and you pay dealer fee of course 375. Then third one is a bond classified as available for sale is purchase at a premium at par, a premium to par, which means a bond is of let us say 1000 rupees, you are paying 1020 rupees, that 20 rupees extra is the premium you are paying. Sometimes these bonds are issued at a discount also, but it all depends about the company whether if there is a market for their bonds, they will sell it at a premium, but if there is no market and they want money, so they can issue at discount. The par value is 1000 and premium is 100 and their transaction cost is 1500. So, this is what they paid at the time of issuing the bonds. A bond is measured at amortized cost. This is another word amortization cost, amortization method. Let me just explain you a bit about it before we go to the solution. Amortization means, for example, you got let us say a license and you paid 10,000 rupees or 20,000 rupees or even 100,000 rupees and it is for 10 years. So, what we do? We take that cost into 10 years dividing by 10 and whatever is the rate you got it, that is how you amortize your cost, that is what amortization cost. So, it is issued for 30,000 and issuance cost is 600. You can see all and then requirement is determined the initial carrying amount of these financial instruments. One by one we are looking to look the initial carrying amount is 50,000 that which you have taken. The transaction cost is 200 are expensed, which means that this 200 is not going to be added to the cost of your assets, but you are taking into the profit and loss account. The treatment applies to because the debt security is classified as held for trading, anything you buy for trading purpose. I am talking about financial institutions, financial instruments. So, if you buy financial instruments for the trading purposes, that is any extra cost to pay that will be recorded in profit and loss account. Therefore, later on may add at fair value which changes in the fair value recognize in profit and loss account and later on if you follow the fair value method then whatever is in the value of the assets again it will be reported in the profit and loss account, but the question is is it trading? So, once it is a trading then it should be taken into profit and loss. The initial number one, number two, the initial carrying amount of 20,000 the dealer fees 375 is expensed as a transaction cost. This treatment applies because the equity securities are classified as fair value which changes in fair value recognize in the profit and loss account. Again you are buying the share of certain company. So, what the fee you pay to the broker is again expensed to the profit and loss account and you record it at 20,000. The third one was the initial carrying amount is 102,500 initially it was 100,000 then you paid two things the sum of amount paid for security and the transaction cost to be added. This statement applies because the bond is not measured at fair value which changes in the fair value to profit and loss account. Fourth one is the initial carrying amount is 29,400 the amount received from the issuing the bond less the transaction cost see it is a liability so that is why you reduce it. Cost for liabilities the transaction cost are deducted not added. If you are buying an asset it is added but if you have let us say issuing a liability then it will be deducted. For liabilities the transaction cost are deducted not added for the initial carrying amount. The treatment applies because the bond is not measured at fair value which changes in fair recognize in the profit and loss account. Here I am talking about the recognition. What about the derecognition? You know once you settle the accounts those asset or liability will be derecognized or if the contract is expired means the time frame is given and in during time frame if you are not maturing your deal then if it expired then again it will be de-recognized or sometime it happens mutually you agree and you cancel out the deal so that can be de-recognized. Thank you very much.