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FRA

In case of AFS, why do unrealized gains/losses go to OCI but in case of trading, it goes to PnL?

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Because those are the (arbitrary) rules of accounting.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

No logic, is it? :)

Nope.

None of which I’m aware.

That’s the biggest problem with FRA: you have to memorize a (large) number of arbitrary rules.

Under US GAAP, interest expense is a non-operating expense, but interest paid is a CFO outflow.  It makes no sense, and you have to know it.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

Ok …