09-29-2004, 04:29 PM
Salam!
IAS 39 requires that a held to maturity investment must be reclassified (to either available for sales or trading) and re measured at fair value (from amortised cost) if there is a change of intent or ability to hold such investments till maturity. this also applies to transfers of such investments. The term "Transfer" comprise any re classification out of held to maturity category including pre mature sales. Thus, the transfer of more that an insignificant portion of held to maturity investments into the available for sale or trading category would not be consistent with an intent to hold other hald to maturity investments to maturity.
The reclassification is recorded in the reporting period in which the sales or transfers occurred and is accounted for as a change in classification. IAS 39 makes it clear that at least two full financial years must pass b4 an enterprise can again classify financial assets as HTM. <font face='Georgia'></font id='Georgia'><font size=5></font id=size5><font color=navy></font id=navy>
Idrees
IAS 39 requires that a held to maturity investment must be reclassified (to either available for sales or trading) and re measured at fair value (from amortised cost) if there is a change of intent or ability to hold such investments till maturity. this also applies to transfers of such investments. The term "Transfer" comprise any re classification out of held to maturity category including pre mature sales. Thus, the transfer of more that an insignificant portion of held to maturity investments into the available for sale or trading category would not be consistent with an intent to hold other hald to maturity investments to maturity.
The reclassification is recorded in the reporting period in which the sales or transfers occurred and is accounted for as a change in classification. IAS 39 makes it clear that at least two full financial years must pass b4 an enterprise can again classify financial assets as HTM. <font face='Georgia'></font id='Georgia'><font size=5></font id=size5><font color=navy></font id=navy>
Idrees
