In your study of accounting it can help if you prepare notes that goes something like this:

TO SUMMARIZE THE 6 - RECLASSIFICATION COMBINATION:

RECLASSIFICATION CASES
1 From FVPL to Amortized Cost
MEASUREMENT
Fair Value at Reclassification
date becomes the new
carrying amount of the
financial asset at amortized
cost

2 From Amortized Cost to FVPL Fair Value at Reclassification

date

3 From Amortized Cost to FVOCI Fair Value at Reclassification

date

4 From FVOCI to Amortized Cost The fair value at reclassification

date becomes the new amortized
cost carrying amount

5 From FVPL to FVOCI Financial asset continues to be

measured at fair value

6 From FVOCI to FVPL Financial asset continues to be

measured at fair value
goes something like this:

COMBINATION:
WHAT TO DO WITH PREVIOUS MEASURED CARRYING AMOUNT
The difference between the new carrying
amount of the financial asset at amortized
cost and the face amount of the financial
asset shall be amortized thru Profit or Loss over
the remaining life of the financial asset
using the effective interest method.
The difference between the new carrying amount and fair value
is recognized in profit or loss.

the difference between the amortized cost carrying amount and the
fair value at reclassfication date is recognized in other
comprehensive income

The cumulative gain or loss previously recognized in other

comprehensive income is eliminated and adjusted against the
fair value at reclassification date

The investment is reverted back to amortized cost measurement

Fair value at reclassification date becomes the new carrying amount

Fair value at reclassification date becomes the new carrying amount

The cumulative gain or loss previously recognized in other

comprehensive income is reclassified to profit or loss at
reclassification date
 WHAT TO DO WITH EFFECTIVE INTEREST RATE example
A new Effective Interest Rate must be determined
based on the new carrying amount or fair value refer to your books for the example
at the reclassification date for each of the 6 cases.

also continue solving the problems

to reinforce your learning

The original effective interest rate is NOT adjsuted

The original effective interest rate is NOT adjsuted

A new effective rate must be determined based

on the new carrying amount or FV at reclass date