Control sales, transfers, and AOCI

A sale confirmation gives quantity, date, and proceeds. It does not by itself give the accounting gain. The sold security may have accrued interest, discount or premium amortization, an allowance, a fair-value adjustment, and AOCI associated with earlier reporting dates.

Close the sold position in order

1. Confirm units sold and the identification method for a partial sale.
2. Update interest, amortized cost, credit, and fair value through the sale date as required by the applicable lane.
3. Freeze the sold portion's gross basis, allowance, valuation adjustment, and accumulated OCI.
4. Record cash and remove every applicable carrying layer.
5. Apply current guidance to any required AOCI reclassification and reconcile the realized result without counting a prior change twice.

The phrase “proceeds less cost” is incomplete until cost means the controlled sale-date basis for the identified units.

Treat transfers as dated events

A supported transfer between debt-security categories has an old lane, an event and approval, a transfer date, a transfer-date measurement, and a new lane. The applicable transfer accounting can affect earnings, OCI, or future amortization differently by direction. Research the current rule for the exact direction; do not use a generic matrix from memory.

The new category does not retroactively change prior interest or fair-value entries. Preserve both pre-transfer and post-transfer states so another reviewer can see the boundary.

Exit check

Prepare a security-level rollforward that begins with opening quantity and each basis layer, adds current measurement, removes sold units, identifies any transfer, and ties ending custody to the ledger. Unexplained AOCI remaining after a complete sale is a release exception, not an automatic plug.