HFT toAFS income

Sunshine4ever

According to CFAI text "if Held for trading is reclassified as Available for Sale, any unrealized G/L goes to income" page 125? Shouldnt it go to OCI?

Houjichasan

You would think so, best to quote page number and paragraph so that "according to...." can be taken in context.

Swanand

sort of tricky...what you've quoted is correct, I would think of it like if you are reclassifying from trading to AFS, or AFS to trading, then since both of those involves trading, and trading unrealized gains/losses go to NI, then in these two cases you must recognize the impact of the reclassification in NI. Does that help?

If you go from HTM---> AFS, THEN the unrealized g/l goes to OCI

ayaz_mahmud369

Should go to OCI I feel. Have you reported it to CFAI?

zhaoyp

I remember this part, it has left me puzzled.
Does not really make sense, does it? Should not it go to the OCI?



Edited 2 time(s). Last edit at Monday, April 11, 2011 at 08:18AM by PositiveOutlook.

eoin

have either of you read my comment? By the way, under IFRS you can't move/reclassify into or out of trading

ap0258

By the way, under IFRS you can't move/reclassify into or out of trading

CFAI mentions that!)))