Hi Dear Tutor, when we buy financial asset such as a bond and if it is valued through OCI (not @ amortised cost), which interest goes to as other income to P/L , effective interest rate or coupon rate?
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financial asset
1y ago#1Effective rate :)
The interest charge will be the same whether the bond is AC or FVOCI
(remember that effective rate is the IRR, which is calculated using the actual cash flows on the bond)
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