I am confused over how interest income is calculated for financial assets carried at FVPL or FVOCI.
I know that for Amortized cost the effective interest rate method is used. The interest income will be coupon payment - amortization of premium or add if there is an amortization of discount.
But how is the income for FVPL or FVOCI calculated? Is it beginning Fair value x effective interest rate? Please clarify, it would be a great help.