Investments Flashcards
Investments in Equity Securities:
- FVPL
- FVOCI
Investment in Equity Securities FVOCI
Measured at Fait Value
Investment in Equity Securities FVPL
Measured at Fair Value
Investment in Debt Securities:
- FAAC
- FVPL
- FVOCI
Investment in Debt Securities FAAC
Measured at Amortized cost
Investment in Debt Securities FVOCI
Measured at Fair value after amortization for the effective interest
Investment in Debt Securities FVPL
Measured at Fair Value
Reclassification of Financial Assets
If the entity determines that its business model has changed in a way that is significant to its operations, then it reclassifies all affected assets prospectively from the first day of the next reporting period.
FAAC to FVPL
Fair value is measured at reclassification date. Difference from carrying amount should be recognized in profit or loss.
FVPL to FAAC
Fair value at the reclassification date becomes its new gross carrying amount.
FAAC to FVOCI
Fair value is measured at the reclassification date. Difference from amortized cost should be recognized in OCI.
Effective interest rate is not adjusted as a result of the reclassification.
FVOCI to FAAC
Fair value at the reclassification date becomes its new amortized cost carrying amount.
Cumulative gain or loss in OCI is adjusted against the fair value of the financial asset at reclassification date.
FVPL to FVOCI
Fair value at reclassification date becomes its new carrying amount.
FVOCI to FVPL
Fair value at reclassification date becomes carrying amount.
Cumulative gain or loss on OCI is reclassified at profit or loss at reclassification date.
FVOCI to FVPL
Fair value at reclassification date becomes carrying amount.
Cumulative gain or loss on OCI is reclassified at profit or loss at reclassification date.
