Hi everyone,
I had some quaries regarding intercorporatre investment,
- U.S GAAP allow reclassification of securities between all the types( HTM,AFS & HFT)
When reclassifying HFT-AFS it recognise unrealize g/l [difference between it carring value & fair value] in p/l but my question is that both HFT & AFS are recorded at fair value then their should be no difference? and when we are reclassifying from HFT to AFS then unrealize g/l should be recorded in other comprehensive income not in income statement. and what about the unrealize g/l that was recognized in p/l statement when security was initially classified as HFT ? what wiil the treatement of that profit after reclassification?
Thank you.