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Reclassification of OCI

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Reclassification of OCI

Viewing 5 posts - 1 through 5 (of 5 total)
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  • June 1, 2018 at 6:08 pm #455330
    rihaam
    Member
    • Topics: 53
    • Replies: 37
    • ☆☆

    Hi,

    What are the items that may be and will not be reclassified to profit and loss and why?

    How do we recycle OCI to profit and loss? What is the entry passed?

    Please help me understand these.

    Thanks

    June 2, 2018 at 9:28 am #455450
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    Gains on property revaluations and gains/losses on FVTOCI cannot be reclassified, and instead a reserve transfer is carried out through the statement of changes in equity. The others can be reclassified through profit or loss.

    Thanks

    June 2, 2018 at 9:41 pm #455622
    rihaam
    Member
    • Topics: 53
    • Replies: 37
    • ☆☆

    But gains/losses arising on FVTOCI investments in debt instruments,aren’t they recycled to Profit or loss. Its said so in my text but saw something contradicting elsewhere. That’s the reason for this question.

    Thanks

    June 2, 2018 at 10:19 pm #455625
    rihaam
    Member
    • Topics: 53
    • Replies: 37
    • ☆☆

    One more question.
    ‘If reclassification ceased, then there would be no need to define profit or loss, or any other total or subtotal in profit or loss, and any presentation decisions can be left to specific IFRSs’.

    What does the above sentence mean?

    Thanks a lot.

    June 3, 2018 at 10:19 am #455722
    aaradhya33
    Member
    • Topics: 16
    • Replies: 33
    • ☆

    Yes,gains and losses debt instruments that are held through OCI can be reclassified to P/L upon disposal. Only gains and losses on equity instruments that are held FVTOCI cannot be reclassified.

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Viewing 5 posts - 1 through 5 (of 5 total)
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