When a debt investment at FVOCI is reclassified to amortized cost, the entity will a. Remeasure the financial asset to original cost. b. The effective rate used for amortization shall be the effective rate at the date of reclassification. c. The cumulative gain or loss previously recognized in OCI is removed from equity and adjusted against the fair value at the reclassification date. d. The cumulative gain or loss previously recognized in OCI is removed from equity and transferred to profit and loss.
When a debt investment at FVOCI is reclassified to amortized cost, the entity will a. Remeasure the financial asset to original cost. b. The effective rate used for amortization shall be the effective rate at the date of reclassification. c. The cumulative gain or loss previously recognized in OCI is removed from equity and adjusted against the fair value at the reclassification date. d. The cumulative gain or loss previously recognized in OCI is removed from equity and transferred to profit and loss.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16. When a debt investment at FVOCI is reclassified to amortized cost, the entity will
a. Remeasure the financial asset to original cost.
b. The effective rate used for amortization shall be the effective rate at the date of reclassification.
c. The cumulative gain or loss previously recognized in OCI is removed from equity and adjusted against the fair value at the reclassification date.
d. The cumulative gain or loss previously recognized in OCI is removed from equity and transferred to profit and loss .
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