XXX Investment Limited invested 10 million in corporate bonds. These investments were classified as FVTPL in line
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XXX Investment Limited invested ₹10 million in corporate bonds. These investments were classified as FVTPL 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 these bonds currently is ₹11 million. What would be the impact of such reclassification in the following cases:
1. Reclassify to ‘measured at amortized cost’.
2. Reclassify to FVTOCI
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1 Reclassify to measured at amortized cost If the company decides to reclassify the corporate bonds from fair value through profit or loss FVTPL to me...View the full answer
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