U.S. GAAP, Codification of Accounting Standards, ASC - Accounting Standards Codification by FASB

U.S. GAAP Codification of Accounting Standards

U.S. GAAP-Codification

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

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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

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