IFRS 9 Reclassification of financial instruments
For financial assets, reclassification is required between FVTPL, FVTOCI and amortised cost, if and only if the entity’s business model objective for its financial assets changes so its previous model assessment would no longer apply. [IFRS 9, paragraph 4.4.1]
If reclassification is appropriate, it must be done prospectively from the reclassification date which is defined as the first day of the first reporting period following the change in business model. An entity does not restate any previously recognised gains, losses, or interest.
IFRS 9 does not allow reclassification: IFRS 9 Reclassification of financial instruments
- for equity investments measured at FVTOCI, or
- where the fair value option has been exercised in any circumstance for a