FVTPL

Financial reporting.

Fair Value Through the Statement of Profit or Loss.

FVTPL describes the accounting treatment of changes in the fair value of derivative instruments.

Under FVTPL, any changes in fair value are reported as part of the profit or loss (earnings) for the period.

Unless there is an offsetting item, also reported as part of profit or loss for the same period, FVTPL treatment can cause volatility in reported earnings, which most companies want to avoid.

See also

• Derivative instrument
• Earnings
• Fair value
• FVTOCI
• Statement of profit or loss
• IAS 39
• IFRS 9
• IFRS 9 hedge accounting reforms: a closer reflection of risk management?
• IFRS 13