Financial instruments shall be measured and recognised based on the intention to hold or dispose the instrument of benefits from its cashflow from its capital appreciation or contractual cashflow.
Where the intention is to hold till maturity, and obtain benefits from the contractual cashflow in form of interest or dividend then it is measured and recognised in ACM i.e, amortised cost method.
Where the intention is to hold for few periods and obtain benefits from the sale of asset in form of capital appreciation then it is measured and recognised in FVTOCI i.e. Fair value through other comprehensive income.
Where the intention is to not hold and just obtain benefits from the sale of asset in form of capital appreciation then it is measured and recognised in FVTPL i.e. Fair value through profit and loss.
Financial liabilities are generally measured in acm method. Usually only equity instruments and derivatives are disclosed in FVTPL. It maybe noted that, equity instruments can be disclosed in FVTOCI but it shall not be changed in the later years.