Definition
Fair Value through Other Comprehensive Income – An accounting classification for equity or debt investments where period-to-period changes in market value are booked directly to Other Comprehensive Income (OCI), not to the profit and loss statement, and (for an equity instrument designated this way) never "recycle" into profit even when the investment is eventually sold. A company holding a large FVOCI equity stake can show a small, stable reported profit while its actual comprehensive income (profit plus OCI) swings wildly from quarter to quarter as the stake's market value moves — a real economic gain or loss that a reader focused only on the profit line would miss entirely. Found In: Balance Sheet ("Investments"), Statement of Profit and Loss (Other Comprehensive Income), Notes to Financial Statements (financial instruments)