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Reclassification of Investment

According to CFAI book pg 14.

“If a security initially classified as held for trading is reclassified as available-for-sale, any unrealized gains and losses (arising from the difference between its carrying value and current fair value) are recognized in profit and loss”

Why is it recognized in PnL and not in Other Comprehensive income?

Thanks

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IFRS rules?

If I remember well, derivatives and FX gains and losses are mostly recognized in OCI.

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Hanuman wrote:
According to CFAI book pg 14.

“If a security initially classified as held for trading is reclassified as available-for-sale, any unrealized gains and losses (arising from the difference between its carrying value and current fair value) are recognized in profit and loss”

Why is it recognized in PnL and not in Other Comprehensive income?

Thanks

Unrealized gains and losses on held-for-trading securities are recognized in profit and loss.

When you reclassify a held-for-trading security as available-for-sale, you have to reclassify it at its current market value.  Therefore, you recognize any unrealized gain or loss while it is still classified as held-for-trading, then reclassify it.

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