What is "reclassification"

n. The act of reclassifying; a second or subsequent classification.

n. classifying something again (usually in a new category)

A reclass or reclassification, in accounting, is a journal entry transferring an amount from one general ledger account to another. This can be done to correct a mistake; to record that long-term assets or liabilities have become current; or to record that an asset is now being used for a different purpose (e.g. land's becoming investment property intended for resale, rather than as property, plant, and equipment used in production).