Banking

AFS / FVOCI Securities — Fair Value Change (OCI)

Revaluing the bank's Available-for-Sale bond portfolio, with the gain going to Other Comprehensive Income.

Account NameTypeDebit ($)Credit ($)
Investment Securities (FVOCI)Asset (+)40,000.00-
Unrealized Gain on FVOCI Securities (OCI)Equity (+)-40,000.00

💡 Accountant's Note

Under IFRS 9, debt instruments held at FVOCI have fair value changes in OCI (not P&L) until sold. This reduces P&L volatility for banks holding large bond portfolios. On sale, the cumulative OCI gain/loss recycles to P&L.

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