Accounting for financial assets at fair value through other comprehensive income (FVOCI)
Financial assets that are debt instruments held in a business model that is achieved by both collecting contractual cash
flows and selling and that contain contractual terms that give rise on specified dates to cash flows that are SPPI are
measured at FVOCI. They are subsequently re-measured at fair value and changes therein (except for those relating to
impairment, interest income and foreign currency exchange gains and losses) are recognised in other comprehensive
income until the assets are sold. Interest (calculated using the effective interest method) is recognised in the income
statement in net interest income (Note 3). Upon disposal, the cumulative gain or loss in other comprehensive income is
included in net investment income (Note 6).
In determining whether the business model is achieved by both collecting contractual cash flows and selling financial
assets, it is determined that both collecting contractual cash flows and selling financial assets are integral to achieving the
objective of the business model. The Barclays Bank Group will consider past sales and expectations about future sales to
establish if the business model is achieved.