Last update 22/08/2019
Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods.[IAS 1 92]
The following reporting lines are items included in Other comprehensive income, the reclassification adjustments are marked.
|
IFRS link |
Financial reporting line |
|
Items that are or may be reclassified subsequently to profit or loss |
|
|
Foreign operations – foreign currency translation differences |
|
|
Net investment hedge – net loss |
|
|
Equity-accounted investees – share of OCI |
|
|
Reclassification of foreign currency differences on loss of significant influence |
|
|
Cash flow hedges – effective portion of changes in fair value |
|
|
Cash flow hedges – reclassified to profit or loss1 |
|
|
Cost of hedging reserve – changes in fair value |
|
|
Cost of hedging reserve – reclassified to profit or loss2 |
|
|
Debt investments at FVOCI – net change in fair value |
|
|
Debt investments at FVOCI – reclassified to profit or loss3 |
|
|
Related tax (income) expense4 |
Note: With an increase in the use of fair value measurement in the financial position, there was a need to separate realised gains and losses from unrealised gains and loss. Realised gains and losses (using accrual accounting) are include in profit or loss. Unrealised gains and losses in other comprehensive income. Using this concept other comprehensive income became a sort of sub-statement for equity, it specifies movements with an unrealised gain or loss effect that would show either:
- directly in profit or loss,
- directly in equity, or
- directly in equity with reclassification to profit or loss upon realisation,
if the statement of other comprehensive income would not be in use.
Reclassification adjustments
Reclassification adjustments
Reclassification adjustments Reclassification adjustments Reclassification adjustments