Insurance

AFS / FVOCI Portfolio — Unrealized Fair Value Gain

Revaluing the insurer's bond portfolio upward at quarter-end.

Account NameTypeDebit ($)Credit ($)
Investment Securities (FVOCI)Asset (+)35,000.00-
Unrealized Gain on FVOCI Securities (OCI)Equity (+)-35,000.00

💡 Accountant's Note

Insurers typically hold large bond portfolios at FVOCI. Fair value gains go to OCI, not P&L, reducing reported volatility. When sold, the cumulative OCI gain recycles to the income statement.

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