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3 Cards in this Set
- Front
- Back
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What are the classification of financial assets? |
Back (Definition) |
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How different reclassification held in financial asset from AFS to HTM for debt security? |
1. Debt securities classified as AFS can be reclassified as HTM if holder intends to and is able to hold the debt till maturity. The security balance sheet value is value is remeasured to reflect its fair value at the time of reclassification. Any difference between this amount and the maturity value and any gain or loss that is recorded in other comprehensive income is amortized over the security remaining life |
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What is the reclassification of HTM to AFS for debt security? |
Reclassification if debt From HTM is possible if holder no longer intends or is no longer able to hold the debt maturity. The carrying value is remeasured to the security fair value, with any differences recognized in other comprehensive income. Note that reclassifying a held to maturity security may prevent the holder from classifying other debt security as HTM or even require other HTM debt to be reclassified as AFS. |
