Let’s say you bought XYZ and you class it as available for sales
COST = 150 000
Fair value = 155 000
If at acquisition all of the equity securities that were eligible to be designated as investement at fair value (here our XYZ) were so designated, the amount contributed to your net income would be 5000 ???
I agree
Unrealized PnL on AFS goes through AFS, not income. Designated at Fair Value is separate from AFS.
This is what I think but in the Turner - CFAI Practice questions on the webiste they include the unrecognized gains of available for sales securities in Net Income. They are available-for-sale securities and shouldnt unrecognized gains be include in OCI ??
http://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91331790#comment-91517870
Read the question… question 2 poses a hypothetical scenario where the securities that were classified as available for sale, if eligible, were instead classified as designated at fair value. Prior to IFRS 9 taking place, designated at fair value is treated just like held-for-trading. Hence, in the hypothetical scenario, the unrealized gains go through the IS.
When you move something from Avail for sale to trading bring the change from OCI to the IS
I think this is the way ?