CERTYNEX IFRS ACADEMY

Banque Est manages a portfolio of bonds under a collection model. The market for some of these securities temporarily disappears, and management considers selling a few of them soon, without changing the portfolio's strategy. Should the portfolio be reclassified?

Yes: an external event in the market requires reclassification from the date of the event.

Yes: management's intention to sell a few securities soon is enough to reclassify the portfolio.

No: the temporary disappearance of a market is not a change in business model.

No, because the reclassification of financial assets does not exist after initial recognition.