Fair Value Through Other Comprehensive Income [FVTOCI] - Ind AS - Indian Accounting Standards - Companies Law

Fair Value Through Other Comprehensive Income [FVTOCI] Fair value through other comprehensive income financial assets are classified and measured at fair value through other comprehensive income if they are held in a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. Accounting Treatment From Initial Recognition of Financial Asset or Financial Liability at Fair Value to Calculation of Finance Cost or Finance Income a per Amortisation Table is same as per Amortised Cost Method of Accounting. In FVTOCI, On each balance sheet date, Financial Asset is shown at Fair Value. Hence, difference between carrying amount as per Amortised Cost method Fair Value is to recognize as fair value gain/loss in OCI. On Sale of Financial Asset - Any balance in Fair Value Reserve (OCI) will be reclassified to profit or loss. On Sale of Investment in Equity Shares Fair Value Reserve (OCI) on sale of such investment will be transferred to retained earnings directly. i.e., it is an item of OCI which is not reclassified to P L.