CHAPTER 21 reclassified to UG/UL-FVTPL

*Reclassify first CA of AC
RECLASSIFICATION OF FINANCIAL
to FVTOCI
ASSET AC ---> FVTOCI
*Account for changes in FV
@ Recla date = Diff is
PFRS 9 P.4.4.1 - Entity shall reclassify FA recognized in UG/UL-OCI
*Orig ER is not adjusted
only when it changes the Business Model
for managing the FA. *FV @ Recla date = New
CA
FVTOCI ---> AC
*Cumulative UG/UL-OCI is
P.5.6.1 - Reclassification shall apply from the eliminated or charged
RECLASSIFICATION DATE = first day of against IIB on recla date.
the NEXT reporting period following the *Orig ER is not adjusted
change in Business model.
*Disclosure for the change in Business
model is required. Equity Debt
Security Investment
EXEMPTIONS FROM RECLASSIFICATION FVTPL X /
A. Equity Investment held for trading FVTOCI X /
- measured at FVTPL AC N/A /
*All Equity Investments cannot be *Equity Inv = cannot be reclassified
reclassified *Debt Inv by Irrevocable election/FV
B. Equity Investment at FVTOCI by Option = Cannot be reclassified
irrevocable election
C. ONLY DEBT INV can be reclassified
because change in business model
applies appropriately to Debt Inv.
*But Debt Inv @ FVTPL by irrevocable
election cannot be reclassified.

RECLASSIFICATION SUMMARY
*FV @ recla date = New CA
*New CA - Face Amount
FVTPL ---> AC
= amortized through P/L
using EIM.
*New ER must be determined.
*FV measurement is continued
FVTPL ---> FVTOCI *FV @ recla = New CA
*No longer reclassify UG/UL-
FVTPL
*New ER must be determined
*Remeasure AC to match FV
change before
Reclassification
IIB xx
Gain on Recla of FA xx
AC ---> FVTPL -------------------------
Loss on Recla of FA xx
IIB xx

*Reclassify AC to FVTPL
FVTPL xx
IIB xx
*FV measurement is continued
FVTOCI ---> FVTPL *FV @ recla date = New CA
*Cumulative UG/UL-OCI is