Reclassification of Securities Designated at Fair Value:
Reclassification of Securities into or out of the designated at Fair Value category is generally prohibited.
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.