The automatic initial and subsequent assignment of an accounting category can be performed in step 1 by the component “Classification of financial assets”.
The following diagram explains at a glance how the solution derives the reclassification according to the category changes in a period using different components with specific encapsulated functions:
which had been assigned at the last posting date and will be compared with the current accounting category by the component “Reclassification of financial assets”.
Diagram: Blueprint reclassification of financial assets
If a reclassification occurred, the solution ensures the appropriate impact on
a) EIR,
b) profit and loss/other comprehensive income,
c) balance sheet and
d) loss allowance
as well as the required output according to IFRS 7 12B-12D.