Under IFRS
Reclassification of Securities out of the held for trading category is severely restricted.
Under U.S. GAAP
Reclassification of Held for Trading Securities:
Reclassification of Securities in or out of the held for trading category is allowed.
i. When a security which is initially recognized as held-for-trading is reclassified to available for sale category:
· Any unrealized gains/losses, resulting from the difference between its carrying amount and current fair value, are recognized in the Income Statement.
ii. When a security is transferred into the Held-for-Trading category:
· Any unrealized gains/losses, resulting from the difference between its carrying amount and current fair value, are recognized in the Income Statement.
Reclassification of Securities out of the held for trading category is severely restricted.
Under U.S. GAAP
Reclassification of Held for Trading Securities:
Reclassification of Securities in or out of the held for trading category is allowed.
i. When a security which is initially recognized as held-for-trading is reclassified to available for sale category:
· Any unrealized gains/losses, resulting from the difference between its carrying amount and current fair value, are recognized in the Income Statement.
ii. When a security is transferred into the Held-for-Trading category:
· Any unrealized gains/losses, resulting from the difference between its carrying amount and current fair value, are recognized in the Income Statement.
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