CAF-6 · Chapter 2 · Question 15 of 15
For an investment in debt instruments measured at FVOCI, how is the effective interest accounted for?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is calculated using the effective interest rate and recognized in profit or loss.
Explanation
Even though a debt instrument at FVOCI has its fair value changes recognized in OCI, its interest income is still calculated using the effective interest rate and recognized in profit or loss.
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