Held for trading; available for sales and designated at fair value

[vicky_cool400]

this reclassification and impairment rules have made me mad

[jaychou]

@Wojtek

Jaychou, following changes made in 2008, IFRS actually allows you to take instruments out of the ‘held for trading’ category (in specific circumstances). It does not permit transfers out of the ‘designated as at fair value through profit or loss’ category. This issue has more to do with politics than with logic … it was one of the hotest accounting topics of late 2008.

is this mentioned anywhere in the CFA curriculum ? if not then what are we expected to do ?

[Stevie_Ray]

What is the other(s) circumstance(s) under IFRS where you cannot reverse an impairment charge besides AFS equity. I think Goodwill? Is there anything else?

[Wojtek]

@jaychou

is this mentioned anywhere in the CFA curriculum ? if not then what are we expected to do ?

Yes, it is. Please refer to pg 111 of the FRA volume.

[Wojtek]

@Stevie_Ray

What is the other(s) circumstance(s) under IFRS where you cannot reverse an impairment charge besides AFS equity. I think Goodwill? Is there anything else?

Goodwiil and AFS equity are the only ones I can think of

[Wojtek]

@Wojtek

@jaychou

is this mentioned anywhere in the CFA curriculum ? if not then what are we expected to do ?

Yes, it is. Please refer to pg 111 of the FRA volume.

But I have to admit that on pg 111 footnote no. 8 is in a misleading/wrong place. It should be at the end of the sentence. There is definitely no way you can reclassify a an instrument that was designated as at fair value through profit or loss (fair value option). The current placing of that footnote seems to suggest that it is possible.