Designated at fair value = held for trading

CFA Level II
#1

I cannot find any difference please confirm.

#2

my understand is that its AFS (or H2M?) that are treated just like HFT. all the same characteristics. for all intents and purposes in my minds DAFV = HFT

#3

Designated at fair value assets are essentially treated like HFT…beats me why there was a need to think of a second “name” for the same thing…

#4

Accounting treatment of ‘Designated at Fair Value’ category is exactly same as that for ‘Held for Trading’. The difference is: any reclassification from DAFV category is strictly prohibitted, whereas securities marked as HFT could be reclassified.

#5

rus1bus Wrote: ------------------------------------------------------- > Accounting treatment of ‘Designated at Fair Value’ > category is exactly same as that for ‘Held for > Trading’. > > The difference is: any reclassification from DAFV > category is strictly prohibitted, whereas > securities marked as HFT could be reclassified. Under IFRS, GAAP, or both?

#6

bpdulog Wrote: ------------------------------------------------------- > rus1bus Wrote: > -------------------------------------------------- > ----- > > Accounting treatment of ‘Designated at Fair > Value’ > > category is exactly same as that for ‘Held for > > Trading’. > > > > The difference is: any reclassification from > DAFV > > category is strictly prohibitted, whereas > > securities marked as HFT could be reclassified. > > Under IFRS, GAAP, or both? That would under IFRS.

#7

From my understanding, the only difference is that HFT is for near-term (< 3 months), but DAFV does not have this restriction.