alleryStart learning →For a debt asset at FVOCI, which basis determines the profit and loss amounts?
AAmortized cost basis
BFair value at year end
CMarket index movement
DOriginal transaction price
Answer & Solution
Correct answer: A. Amortized cost basis
Interest and similar P&L items follow amortized cost, while the gap between amortized cost and fair value goes to OCI.
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