Morning Exam 3 .

Q 59. Wayland Owns some publicly traded bonds of Roro that it reports as h-t-m. Q says Wayland would have the option to report them as fair value rather than h-t-m. Answer is “Both IFRS & GAAP” I answered “neither IFRS nor GAAP” I remember there are strict prohibitions against playing fast-and-loose with h-t-m securities. Once they are h-t-m you cannot willy nilly move them to a-f-s , because once you do so you declare your intention to never again do any h-t-m . Is it just me that was making this too complicated? I am feeling annoyed because I thought I was getting it right

they are talking not about internal transfers - but about the DFV category (designated at Fair Value). Option to designate at Fair value is available both in IFRS and GAAP.

Firms can choose to report debt and equity securities that are HTM at fair value, and will be treated similar to HFT. Check p. 12 of book 2.

Thanks ro and cpk