When FVOCI financial instruments are sold, the gains or losses on disposition are recycled from AOCI to Retained Earnings.

Question

Quizplus · Accepted Answer

When FVOCI (Fair Value Through Other Comprehensive Income) financial instruments are sold, the accumulated gains or losses previously recognized in Other Comprehensive Income (OCI) are reclassified (recycled) from Accumulated Other Comprehensive Income (AOCI) to Profit or Loss, not directly to Retained Earnings.

When FVOCI Financial Instruments Are Sold, the Gains or Losses