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Good evening sir,
the ineffective portion of a cash flow goes to oci and then is later reclassified to P&L. Let’s say its 2m in OCI in 20X2, and in 20X3 1m gets reclassified to P&L. What happens to the remaining 1m? Does it stay in OCI for the coming years?Effective portion to OCI then recycled to P&L
Ineffective portion to P&L
This is a very technical point 🙂 Don’t forget that the exam will be straightforward.
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