Accounting for Transfers Between Security Classes

Transfer Effect on Asset value in Effect on income

From To Balance sheet statement
Held-to-maturity Available-for-sale Asset reported at fair value Unrealized gain or loss on date
instead of (amortized ) cost of transfer included in
comprehensive income
Trading Available-for-sale No effect Unrealized gain or loss on date
of transfer included in Net
income
Available-for-sale Trading No Effect Unrealized gain or loss on date
of transfer included in Net
income.
Available-for-sale Held-to-Maturity No effect at transfer: however Unrealized gain or loss on date
asset reported at amortized of transfer included in
cost instead of fair value at comprehensive income
future dates.