Financial Statement Analysis

Amortized cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVPL), determined by the business model and the contractual cash flow characteristics.

It is measured at amortized cost and no unrealized gains or losses are recognized; only interest income, realized gains/losses, and impairment flow through the income statement.

In profit or loss (the income statement) each period as the fair value changes.

Unrealized gains/losses go to OCI and are NOT later reclassified (recycled) to profit or loss on sale; only dividends are recognized in P&L.

Under US GAAP, AFS debt securities are carried at fair value with unrealized gains/losses in OCI, and those amounts ARE reclassified to net income when realized on sale.