HTM = Held-to-Maturity HFT = Held-for-Trading AFS = Available-for-Sale My notes says for under GAAP, it’s okay to go in/out between HFT and AFS, but not to HTM at all. Is this correct? And is the rule the same under IFRS?
Yes I believe that is correct. And I believe it’s the same for IFRS.
IFRS: Nothing can be classified into or out of Trading. You can go from AFS to HTM or HTM to AFS. GAAP: Permits everything.
under IFRS -out of HFT is severely restricted
This is great! I think i got all this… any special treatment with regards to IFRS / GAAP in terms of the unrealized gains/losses (or any changes in value) on the b/s or OCI when changes take place? Or is it all intuitive towards the new class the security is being classified as? Thank you!