Unfortunately the IFRS meeting records weren't as comprehensive back in 2009 when this matter was discussed, so I can't get a record of the actual Board discussion (though it may exist on audio tape but I am not that enthused to go back and review).
There is a specific paper addressing OCI and recycling:
http://archive.ifrs.org/Current-Project ... b3Aobs.pdf
The key paragraph is para 28:
"As no recycling mechanisms would be established, which reduces complexity compared to today’s accounting for available-for-sale equity instruments, there is no incentive for management to designate any equity instruments that are managed on a fair value basis as the instrument’s performance would never be reported in profit or loss. This is based on the assumption that management would only undertake an investment managed on that basis if it expects that it generates benefits and these benefits are reported in profit or loss."
This all started to ring a bell, though its been a few years since I really thought about IAS 39, and I don't really want to relive those days (especially at 10pm on a Saturday night [why do I do this to myself]), but I believe these are the offending paragraphs of IAS 39:
Available-for-sale financial assets
67 When a decline in the fair value of an available-for-sale financial asset has been recognised directly in equity and there is objective evidence that the asset is impaired (see paragraph 59), the cumulative loss that had been recognised directly in equity shall be removed from equity and recognised in profit or loss even though the financial asset has not been derecognised.
68 The amount of the cumulative loss that is removed from equity and recognised in profit or loss under paragraph 67 shall be the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss.
69 Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available for sale shall not be reversed through profit or loss.
70 If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss shall be reversed, with the amount of the reversal recognised in profit or loss.
An international GAAP book at the time described these requirements in certain circumstances as "a little inconsistent" and difficult to implement.