## AS 13 — Reclassification of Investments
When an investment moves between the current and long-term categories, the transfer value depends on the direction of transfer.
### Transfer Value Rules
| Direction of Transfer | Transfer Value |
|---|---|
| Long-term → Current | Lower of: (a) Cost OR (b) Carrying amount in books at the date of transfer |
| Current → Long-term | Lower of: (a) Cost OR (b) Market value at the date of transfer |
### Why Different Rules?
- Long-term → Current: The carrying amount in books may already reflect a provision for diminution. You use the lower to not inflate the new current category.
- Current → Long-term: You apply the current investment rule at the moment of transfer (lower of cost or MV), so the asset enters the long-term category without embedding an unrealised gain.
### Memory Shortcut
> Entering Long-term: Apply old Current rules (lower of cost / MV at transfer date).
> Entering Current: Apply lower of cost / book value (carrying amount already in books).