Which of the following is incorrect regarding the new FAFVOCI classification? The FAFVOCI measurement category is mandatory when a portfolio of debt instruments is held within a business model in which assets are managed to achieve a particular objective by both collecting contractual cash flows and selling financial assets. The new FAFVOCI measurement category is aimed at portfolios of debt instruments, for which amortization cost information, as well as fair value information, is relevant and useful. Interest revenue and expected credit losses on debt instruments classified as at FAFVOCI are computed and recognized in the same manner as financial assets measured at amortized cost (FAAC). Upon derecognition the net cumulative fair value gains or losses recognized in other comprehensive income are closed directly to retained earnings.