Basic Doubt regarding reclassification of assets(inetercorp inv)

CFA Level II FRA
#1

FRA 9th case provided in CFAI topic test(Turner) : A company which is following IFRS reporting standard

Qs No. 2: How come the solution states,the equity securities which are designated to AFS could have been designated to fair value and then keeps on adding the unrealized G/L to the net income of turner.

Is this reclassification allowed in IFRS?

#2

As far as I know, under the current IFRS rules (not IFRS 9 which are not effective for now) reclassifying securities in or out of trading securities (or designated at fair value) is RESTRICTED. In other words, I think its possible under strict circunstances although not really common.