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Flashcards in Investments Deck (7)
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1

How are Available-For-Sale securities recorded on the Balance Sheet?

At Fair value as either Current or Non-current assets.

2

How are Available-For-Sale security Unrealized G/L treated?

Included in OCI (Other Comprehensive Income)

3

How are Unrealized G/L for Available-For-Sale securities that are reclassified to Held-to-Maturity or Trading Securities treated?

HTM - Stockholder's Equity / Trading Securities - Current Period.

4

How are Held-to-Maturity securities recorded on the Balance Sheet?

Amortized cost as Current or Non-current assets. If reclassified as AFS - Unrealized G/L go to Stockholder's Equity If reclassified as Trading Securities - Unrealized G/L recognized in Current Period

5

How are Held-to-Maturity securities Unrealized G/L treated?

Trick question - Unrealized gains or losses are not applicable because they are HTM

6

How are Trading Securities recorded on the Balance Sheet?

At Fair Value as a Current Asset Unrealized gains/losses are recorded on the Income Statement If they are reclassified as held-to-maturity or available-for-sale- there is no effect upon transfer.

7

How are Trading Securities Unrealized G/L treated?

Recorded on the Income Statement If they are reclassified as HTM or AFS - there is no effect upon transfer.