7. FINANCIAL ASSETS
 
Concepts of financial assets
 
Cost
 
Cost of a financial asset is the amount of cash or cash equivalents paid, disbursed or payable of such financial asset at its initial recognition. The transaction costs incurred directly from the purchase of financial asset might be included in the cost of the financial asset or not depending on the category that the financial asset is classified in.
 
Fair value/market value
 
The fair value or market value of a financial asset is the price at which the financial asset would be traded voluntarily between knowledgeable parties on an arm’s length basis.
 
The fair value/market value of securities is determined using the method described in Note 4.6.
 
Amortised cost
 
Amortized cost of a financial investment (which is debt instrument) is the amount at which the financial asset is measured at initial recognition minus (-) principal repayments, plus (+) or minus (-) the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction for impairment or irrecoverability (if any).
 
For presentation purpose, provision for diminution in value or irrecoverability of financial assets is recognised in “Provision for impairment of financial assets and mortgage assets" in the consolidated statement of financial position.
 
Carrying amount
 
Carrying amount of a financial asset is the amount at which the financial asset is recognized in the consolidated statement of financial position. Carrying amount of a financial asset might be recognised at fair value (for FVTPL and AFS financial assets) or at amortised cost (for HTM investments and loans), depending on the category that the financial asset is classified.  
 
7.1 Financial assets at fair value through profit and loss (FVTPL)
 
 
(1) As at 31 December 2018, among the listed shares classified as financial assets at FVTPL, there are 3,217,818 shares with par value of VND 32,178,180,000 used as collaterals for short-term borrowings of the Company. 
 
7.2 Available-for-sale (AFS) financial assets
 
 
7.3 Held-to-maturity investments (HTM)
 
 
As at 31 December 2018, there are term deposits and certificates of deposits with remaining maturity of less than 1 year and with balance of VND 4,145 billion and VND 7,167 billion that are used as collaterals for bank overdrafts and short-term borrowings of the Company respectively. 
 
7.4 Loans and receivables
 
 
(1) Securities under margin transaction are used as collaterals for the loans granted by the Company to investors. As at 31 December 2018 and 31 December 2017, the par value of those securities that are used as collaterals for margin trading was VND 6,486,103,208,000 and VND 6,040,499,840,000 respectively, the market value of those securities that are used as collaterals for margin trading was VND 16,535,868,540,430 and VND 16,549,831,922,670 respectively. 
 
(2) These relate to advances to investors during the period that the shares selling proceeds are awaiting to be received.
 
(3) These relate to brokerage contracts for selling bonds held by customers; whereby the Company advances to customers for the period that bonds are awaiting to be sold. 
 
(4) The fair value of loans is measured at cost less provision for doubtful debts.
 
7.5 Change in market values of financial assets 
 
 
8. PROVISION FOR IMPAIRMENT OF FINANCIAL ASSETS AND MORTGAGE ASSETS
 
 
The provision is made for impairment of loans from margin activities.