When financial instruments that are designated as FVOCI are expected to be sold, a gain or loss for the difference between the amortized cost and fair values will be made to OCI.

Question

Quizplus · Accepted Answer

When financial instruments designated as FVOCI (fair value through other comprehensive income) are expected to be sold, any gain or loss for the difference between the amortized cost and fair value will be made to OCI (other comprehensive income). This is in contrast to financial instruments designated as FVPL (fair value through profit or loss), where any gain or loss is immediately recognized in the income statement.

When Financial Instruments That Are Designated as FVOCI Are Expected