Reclassification of Securities Designated at Fair Value:
Under IFRS:
Reclassification of Securities into or out of the designated at Fair Value category is generally prohibited.
Exceptions:
IFRS allows reclassification of financial asset if it is no longer held for purpose of selling in the near term.
· The financial asset is reclassified at its Fair value.
· Any gains/losses are recognized in the Income Statement.
· The fair value on the date of reclassification becomes its new cost or amortized cost.
Under U.S. GAAP:
Reclassification of Securities into or out of the designated at Fair Value category is allowed.
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