How to record reclass of debt FVTOCI to FVTPL
Reclassifying a debt instrument from FVTOCI to FVTPL due to a change in the entity's business model.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accumulated OCI - Debt Investment | Equity | 3,000.00 | - |
| Gain on Reclassification (P&L) | Revenue | - | 3,000.00 |
💡 Accountant's Note
Upon reclassification from FVTOCI to FVTPL, the cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified (recycled) from equity to profit or loss.
Practitioner & Systems Framework
💻 ERP Architecture
The reclassification date must be the first day of the first reporting period following the change in business model.
⚠️ Audit Flags
Reclassification without a documented change in business model or failure to recycle OCI.
📄 Required Documentation
Board minutes approving the change in business model and investment strategy documents.
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