Intercorporate Investments - FSA

I wanted to confirm can we transfer investments from Trading to AFS or HTM ? if yes - whats the treatment to unrel G/L … transferred to CTA/ amortized

yes you can and you have to recognize the unrealized g/l immediately (i think) would be a warning sign for sketchy accounting if companies started messing around a lot with classifications of securities for no apparently good reason.

BOOK2 - p 128 a. Transferring to Trading = All unrealized gains or losses included in income b. Transferring to AVS (from Debt) = All unrealized gains or losses in equity c. Tranferring AVS to Debt = unrealized gains/losses remain in eq but amortized