Accounting for Reclassification of Financial Asset

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... From ACM ~ No Change ~ It is measured at Fair Value on reclassification date. Any gain or loss arising from difference between the previous amortised cost of the financial asset and fair value is recognised in OCI. Example - Bonds for ₹1L reclassified as FVTOCI. Fair Value on reclassification is ₹90,000. JE - Bonds at FVTOCI Dr ₹90,000 OCI (loss on reclassification) Dr &#8....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....easured at reclassification date as if it had always been measured at amortised cost. This adjustment affects OCI but does not affect profit or loss and therefore, is not a reclassification adjustment. Example - Bonds for ₹1L reclassified as Amortised Cost. Fair Value on reclassification is ₹90,000 and ₹10,000 loss was recognized in OCI till date, JE - Bonds at FVTOCI Dr &#83....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r value on reclassification date and this fair value becomes the new gross carrying amount. Effective interest rate is computed based on this new gross carrying amount. Any gain or loss arising from difference between the previous amortised cost of the financial asset and fair value is recognised in profit or loss. Example - Bonds for ₹1L reclassified as Amortised Cost. Fair Value on recl....