FVTOCI: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update.) |
imported>Doug Williamson (Layout.) |
||
| Line 4: | Line 4: | ||
FVTOCI describes an accounting treatment for changes in the fair values of derivative instruments. | FVTOCI describes an accounting treatment for changes in the fair values of derivative instruments. | ||
Under FVTOCI, changes in fair value are ''not'' reported as part of profit or loss (earnings) for the period. | Under FVTOCI, changes in fair value are ''not'' reported as part of profit or loss (earnings) for the period. | ||
Revision as of 10:40, 18 August 2016
Financial reporting.
Fair Value Through the statement of Other Comprehensive Income.
FVTOCI describes an accounting treatment for changes in the fair values of derivative instruments.
Under FVTOCI, changes in fair value are not reported as part of profit or loss (earnings) for the period.
Instead they are reported as part of 'other comprehensive income'.
The consequence of FVTOCI treatment is to avoid volatility in reported earnings.
