Accounting for Reclassification of Financial Asset

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..... [FVTOCI] To Fair Value Through Profit or Loss [FVTPL] 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 .....

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..... e. However, cumulative gain or loss previously recognised in other comprehensive income (OCI) is removed from equity and adjusted against fair value of financial asset at reclassification date. As a result, the financial asset is measured 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, .....

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..... CI A/c to P L A/c. Example Bonds for ₹1L reclassified as FVTPL. Fair Value on reclassification is ₹90,000. JE P L (Loss on reclassification) Dr. ₹10,000 To OCI (Loss on reclassification) ₹10,000 Bonds at FVTPL Dr. ₹10,000 To Bonds at FVTOCI ₹10,000 From FVTPL It is measured at .....

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..... lue on reclassification is ₹90,000. JE Bonds at FVTOCI Dr ₹90,000 OCI (loss on reclassification) Dr ₹10,000 To Bonds at FVTPL ₹1,00,000 ~ No Change ~ - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - taxmanagement - taxmanagement .....

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