alleryStart learning →A debt asset at FVOCI is sold. What happens to the OCI gain?
AIt stays in OCI forever
BIt moves to share capital
CIt is written off to reserves
DIt is recycled to profit
Answer & Solution
Correct answer: D. It is recycled to profit
Unlike FVOCI equities, debt FVOCI gains are reclassified from OCI to profit or loss on sale.
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