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EFG Inc. changes its business model and determines the ff. info. carrying amount of financial asset under previous classification - 200,000 fair value on reclassification

EFG Inc. changes its business model and determines the ff. info.

  • carrying amount of financial asset under previous classification - 200,000
  • fair value on reclassification date (Jan. 1, 2023) - 240,000

WHAT ARE THE ENTRIES TO BE RECORDED ON RECLASSIFICATION DATE UNDER THE FF. SCENARIOS?

  1. FVPL to FVOCI (mandatory)
  2. FVOCI (mandatory) to amortized cost - the cumulative balance of gain previously recognized in equity is 10,000
  3. FVOCI (mandatory) to FVPL - the cumulative balance of gain previously recognized in equity is 10,000

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