Investments Flashcards Preview

FAR > Investments > Flashcards

Flashcards in Investments Deck (3)
Loading flashcards...
1

How are trading securities recorded?

On the balance sheet at Fair Value- as current assets

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.

2

How are Available-For-Sale securities recorded?

On the balance sheet- at fair value as either current or non-current assets.

Unrealized gains/losses are included in OCI (Other Comprehensive Income)

If reclassified as held-to-maturity- unrealized G/L go to Stockholder's Equity

If reclassified as trading securities- unrealized G/L recognized in current period.

3

How are held-to-maturity securities recorded?

On the balance sheet at amortized cost as current or non-current assets.

Unrealized gains or losses are not applicable.

If reclassified as available-for-sale- unrealized G/L go to Stockholder's Equity

If reclassified as trading securities- unrealized G/L recognized in current period