Transfer between categories of debt securities is accounted for at transfer date fair value. The following describes the treatment of unrealized holding gains and losses at that date:
From To Earnings Recognition
Trading Other Category
Unrealized holding gains and losses on securities have already been recognized in the income statement at the last reporting date and hence, are not reversed
Other Trading
Unrealized holding gains and losses on securities (not previously recognized in income) must be recognized in earnings immediately
HTM AFS
Unrealized holding gains and losses on securities must be recognized in Other Comprehensive Income
AFS HTM
Unrealized holding gains and losses on securities must continue to be reported in Other Comprehensive Income
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