I am reviewing my schweser notes, thought i throw this out there for review. I think this would have helped for mock 1 questoin #14. 1. Transfering HTM/available for sale --> Trading = transfered at FMV and unrealized g/l goes into income. 2. Transfering HTM --> available for sale = transfer also at FMV but unrealized g/l go into EQ (comprehensive income) 3. Available for sale --> HTM = transfer at FMV and unrealized g/l amortized over life of security.
Basically you just switch to the accounting of the type you are transferring to…
Except for third option …
That is basically how the bonds that are HTM maturity work.