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Flashcards in Marketable Securities Deck (19):
1

What are securities that are bought and held principally for the purpose of selling them in the near term?

Trading securities

2

What type of asset is trading securities?

Current asset

3

What are securities that are securities(both debt and equity) not meeting the definitions of the other two classifications?

Available-for-sale securities

4

What type of asset is available-for-sale securities?

General rule is noncurrent asset

5

What are securities that are investments in debt securities?

Held-to-maturity securities

6

What type of asset is Held-to-maturity securities?

General rule is noncurrent asset

7

Trading and available-for-sale must be reported at?

Fair value

8

Unrealized holding gains and losses onn trading securities are included in?

Earnings

9

Unrealized holding gains and losses on available-for-sale securities are reported in?

Other comprehensive income

10

Under IFRS, where is foreign exchange gains and losses on available-for-sale debt securities reported on?

Income statement

11

Under IFRS, where is foreign exchange gains and losses on available-for-sale equity securities are reported in?

Other comprehensive income

12

Held-to-maturity securities are valued at?

Amortized cost

13

How is the unrealized holding gain or loss treated at the date of transfer from trading category?

Already recognized in earnings and shall not be reversed

14

How is the unrealized holding gain or loss treated at the date of transfer to trading category?

Shall be recognized in earnings immediately

15

How is the unrealized holding gain or loss treated at the date of transfer for debt security classified as held-to-maturity transferred to available-for-sale?

Shall be reported in other comprehensive income

16

How is the unrealized holding gain or loss treated at the date of transfer for debt security classified as available-for-sale transferred to held-to-maturity?

Already reported in other comprehensive income

17

Should the unrealized holding gain or loss be amortized when transferred from available-for-sale to held-to-maturity?

Yes

18

How is the amount of the cost basis of the individual security is written down to fair value as the new cost basis and the amount of the write-down is accounted for?

Realized loss and included in earnings

19

A sale of a security from any category results in a realized gain or loss and is reported on the?

Income statement for the period