IFRS: CANNOT reclassify in and out of trading or designated at FV. IFRS: CAN go in and out of AFS & HTM. US GAAP: CAN reclassify anything and everything. RIGHT?
wait, i think it’s: IFRS: HTM & AFS cannot be reclassified, period. IFRS: DFV cannot be reclassified to HTM or AFS. GAAP: cannot be reclassified into or out of HTM & AFS. i “think” i summarized it right.
hm… I “think” you are wrong… Can anyone else clatify??
ok, how about this: IFRS: HTM & AFS cannot be reclassifed to HFT or DFS. IFRS: DFV (& HFS - i guess) cannot be reclassified to HTM or AFS. IFRS: HTM can be reclassified to AFS and vice versa. GAAP: reclassification into or out of HFT or DFV is allowed.
that’s what I said initially innit?
well, not quite, i think i’ve “fine-tuned” it for ya.
Looks the same to me! Oh well, the important thing is we in agreement, cheers
you are both wrong it should be this IFRS: CANNOT reclassify in and out of trading or designated at FV. IFRS: CAN go in and out of AFS & HTM. US GAAP: CAN reclassify anything and everything.
imcrnhlio1 Wrote: ------------------------------------------------------- > you are both wrong it should be this > > > IFRS: CANNOT reclassify in and out of trading or > designated at FV. > IFRS: CAN go in and out of AFS & HTM. > > US GAAP: CAN reclassify anything and everything. You are wrong in relation to US GAAP. Designation at fair value is irrevocable under both methods.
bp, i’m not sure where you read that from, but according to CFAI vol2, pg 14-15, but correct me if i’m wrong… i don’t see anywhere that says GAAP prohibits reclassification into or out of DFV. earlier when i wrote that summary, i was basing it on the schweser notes, but now that i’ve taken the time to read it from the CFAI book, i think GAAP does indeed allow reclassification “between all categories using the fair value of the security at the date of transfer” (1st sentence of paragraph 1 of pg 15). bpdulog Wrote: > > You are wrong in relation to US GAAP. Designation > at fair value is irrevocable under both methods.
I would have to agree that GAAP permits reclassification into and out of trading, as well as DFV.
DFV reclassification under GAAP is severely limited. Only possible explanation is if you lose pricing, but do not have a reliable estimate that it is impaired. Think of it this way. Bear Stearns would still be around if they could designate out of fair value because all of their losses would have moved to equity instead of posting huge quarterly losses.
it was implied you would have to have a reason to reclassify other than wanting to hide losses from investors…just saying it is possible.
the better question is are you or are you not John Mack?
yes i agree with jmac that you would have to have a good reason, but no where does it say explicitly (in the CFAI books) that you are NOT allowed. it is still possible to reclassify, imo.
whr was ths question??? i dont remember it being asked… my exam form number was 6060
CFA_10 Wrote: ------------------------------------------------------- > whr was ths question??? i dont > remember it being asked… my exam form number was > 6060 it was only asked on the Friday June 4th exam. If you took it on saturday you lucked out
I don’t think the question was about what’s allowed or not… was it?
Dreary Wrote: ------------------------------------------------------- > I don’t think the question was about what’s > allowed or not… was it? It was if you knew how to read
oooppppppppssss… im so sorry… i missed out the post date and time… sorry