Fair Value Through Other Comprehensive Income (FVOCI)
Accounting glossary · Understand, connect, apply
FVOCI measures qualifying financial assets at fair value and presents specified changes in other comprehensive income. IFRS 9 has separate rules for qualifying debt assets and elected equity investments.
Example
A qualifying debt investment rises in fair value. The gain can appear in other comprehensive income while interest calculated using the effective interest method appears in profit or loss.
Remember the difference
Eligible equity investments can be subject to an irrevocable election with different disposal rules. Identify the type of asset before deciding what goes to profit or loss.
Browse the accounting glossary · Read the IFRS Foundation reference
Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
← Return to the accounting glossary