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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial assets- debt instrument
“At the reporting date, the asset will be revalued to fair value with the gain or loss recognised in other comprehensive income. This will be reclassified to profit or loss when the asset is disposed.”
sir this statement has been written under FVOCI method of measurement for financial assets in the form of debt instruments. Now, my doubt pertaining to it is that, the overall gain/(loss) over the period of this investment is credited/(debited) to SPL(that was once put in OCI) or only the ultimate gain/(loss) on disposal, based on fair value at the time of selling, is recycled into SPL??
P.S.- Is recycling of gains/(losses) any different from reclassification of the same?
Gains and losses are the same.