Finvest Limited investments in corporate bonds amounting to 12 million. These investments were classified as FVTOCI in
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Finvest Limited investments in corporate bonds amounting to ₹12 million. These investments were classified as FVTOCI in line with the business model of the company. With the change in the business model, the company would like to reclassify these investments. The carrying amount of this investment is ₹11 million and accumulated loss previously recognized in OCI as a part of other equity amounts to ₹1 million. What would be the impact of such reclassification in the following cases:
1. Reclassify to ‘measured at amortized cost’.
2. Reclassify to FVTPL.
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The reclassification is permitted if there is a change ...View the full answer
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