U.S. GAAP Codification of Accounting Standards

U.S. GAAP Codification IFRS International Standards Accounting Standards, ASC

U.S. GAAP Accounting Standards
Codification Topic 320-10-35
  
Transfers of Securities: Between Categories


Principles of Accounting Intermediate Financial AccountingU.S. GAAP Textbook
IFRS,  IFRS Dictionary IFRS U.S. GAAP Comparison IFRS Texbook
Securities Law Library,  Accounting by Topic Accounting Terms Dictionary


   Codification Topic 320-10-35
  
Transfers of Securities: Between Categories

Reclassification of Investments in Securities

1. All securities reclassified 
--> from one category to another
--> are transferred at fair value

2. From Trading to Other
--> Unrealized Holding Gain and Loss (HGL) at transfer date
--> already recognized in earnings
--> not reversed

3. From Other to Trading
--> Unrealized Holding Gain and Loss (HGL) at transfer date
--> recognized in earnings immediately

4. From HTM to AFS
--> Unrealized Holding Gain and Loss (HGL) at transfer date
--> recognized in OCI

5. From AFS to HTM
--> Unrealized Holding Gain and Loss (HGL) at transfer date
--> stays in OCI
--> amortized over remaining life of security

6. Following transfers should be rare
--> from HTM to Other
--> from Trading to Other
--> from Other to Trading

7. Classification
--> reassessed at the end of each reporting period


OCI: Other Comprehensive Income
Trading: Trading Securities
AFS: Available-for-Sale Securities
HTM: Held-to-Maturity Securities
HGL: Holding Gain and Loss
FVPL: Financial Assets and Financial Liabilities at Fair Value through Profit or Loss


International Financial Reporting Standards (IFRS)

   IAS 39: Financial instruments: recognition and measurement


IAS 39 Before October 2008 Amendment

Financial instrument
--> not allowed to be transferred into FVPL
--> not allowed to be transferred out of FVPL

October 2008 Amendment to IAS 39

Financial instrument
--> not allowed to be transferred into FVPL
--> after initial recognition

Financial instrument
--> not allowed to be transferred out of FVPL
--> if it was designated as FVPL before

Derivative
--> not allowed to be transferred out of FVPL

Financial instrument
--> currently classified as "held-for-trading"
--> allowed to be transferred out of FVPL, 
--> if certain conditions are met

Financial instrument
--> currently classified as "Available-for-Sale"
--> allowed to be transferred to Loans and Receivables, 
--> if certain conditions are met


Reasons for Amendments in October 2008
--> to be consistent with U.S. GAAP

[U.S. GAAP, SFAS 115]
Reclassification out of Trading
--> allowed, in rare situations

[U.S. GAAP, SFAS 65]
Reclassification 
--> out of Mortgage Loans Held for Sale
--> into Mortgage Loans Held for Long Term Investments
--> allowed, if certain conditions are met


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   Codification Topic 320
   Investments-Debt and Equity Securities
 
Subtopics of Codification Topic 320
 
   320-10 Overall   
 
Accounting Terms of Codification Topic 320-10
 
   Amortized cost basis
   Asset group
   Available-for-sale securities
   Component of an equity
   Cost basis
   Debt security
   Equity security
   Fair value
   Holding gain or loss
   Operating segment
   Readily determinable fair value
   Reporting unit
   Retrospective interest method
   Security
   Structured note
   Trading
   Trading securities
 


   Other Topics at the Codification 300 
Accounting Standards Codification, ASC, Overview
 
ASC Codification Topic 305: Cash and Cash Equivalents
 
ASC Codification Topic 310: Receivables
 
ASC Codification Topic 320: Investments-Debt and Equity Securities
ASC Codification Topic 323: Investments-Equity Method and Joint Ventures
ASC Codification Topic 325: Investments-Other
 
ASC Codification Topic 330: Inventory
 
ASC Codification Topic 340: Other Assets and Deferred Costs
 
ASC Codification Topic 350: Intangibles-Goodwill and Other
 
ASC Codification Topic 360: Property, Plant, and Equipment


   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

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