Reclassifying from non-onerous to Onerous
"The last factoid from this section lists considerations in reclassifying a group of contracts from non-onerous to onerous under PAA:"
I thought we NEVER changed the grouping after initial recognition; I can understand that if circumstances changed, we could potentially create a loss component for a group. However, that group's label (if initially is non-onerous-with-no-possibility-of-turning-onerous or non-onerous-with-possibility-of-turning-onerous) would not change, right?
Comments
You can reclassify a group as onerous form non-onerous, basically swapping out the CSM for a LC but you are right you wouldn't change their grouping unless there is derecognition or a contract modification