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Reclassification
(redirected from reclassifications)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia 0.01 sec.
Reclassification
In mutual funds, the act or process of changing one type of fund into another type. For example, one may reclassify a front-load fund to a back-load fund or vice versa. One of the most common types of reclassification occurs when a load fund, after a certain number of years, becomes a no-load fund. This happens because the load generally only exists for a certain number of years. The IRS does not consider reclassification to be a taxable event, even if it results in more income or capital gains.


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The seminar focused on the implications of the International Accounting Standards Board's recent amendments to International Accounting Standard Recognition and Measurement and International Financial Reporting Standard 7 Financial Instruments: Disclosures, allowing reclassifications of certain financial instruments.
Several other minor reclassifications have also been made between product lines and segments.
 
 
 
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