Designated at Fair Value

CFA Level II
#1

What’s the difference between this and held for trading?

#2

Under GAAP and IFRS, designation at fair value is irrevocable. Under GAAP, moving into and out of HFT is permissible. Under IFRS, moving into and out of HFT is generally prohibited.

#3

Right but the accounting treatment looks exactly the same as HFT right? So the difference is just in the re-classifications?

#4

mambovipi Wrote: ------------------------------------------------------- > Right but the accounting treatment looks exactly > the same as HFT right? > > So the difference is just in the > re-classifications? Correct

#5

I thought the difference wasn’t because of the reclassification but the classification because they are HTM or AFS that are being treated like held for trading, therefore being called designated at fair value?

Comments anyone?