Financial assets- Equity instrument

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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January 5, 2021 at 12:36 pm #601533
Noah098
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sir i understand that any asset in the form of equity instrument once recorded under FVOCI cannot be reclassified and put under FVPL.
But is the other way round possible? Where an asset(equity) held under FVPL be reclassified to FVOCI?
January 6, 2021 at 3:28 pm #601746
Stephen Widberg
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To avoid ‘cherry picking’ you cannot change from FVOCI to FVPL. I suspect that, if you interpret the rule literally, you can’t go the other way.
Bear in mind that this is not a big exam topic! Examiner tends to tell you how financial instruments are classified.
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