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Available for sale security

In the beginning of FRA they said that available for sale unrealized gains and losses are a part of other comprehensive income; now I am reading that under IFRS the unrealized g/l due to rate fluctuations go into the IS….. this is wrong, right? And how about GAAP? where do they go. 

Thank you in advance

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No, it’s not wrong, and I believe this would be for debt securities. For IFRS, the gains and losses that come from exchange rate fluctuations go into the income statement and everything else goes into OCI. For GAAP, everything goes to OCI. For equity securities, everything goes to OCI under IFRS and GAAP.

It is not wrong AFS securities will go through OCI. FX fluctuations will go through the P&L. 

However, all this is moot point when IFRS 9 becomes effective in Jan 1, 2018. Probably best to forget it once you write the exam in December.