Chapter 3 Marketable Securites Flashcards
When the fair value of an investment in debt securities exceeds in cost how should a HTM and AFS be reported
Held to maturity - at cost
Available for sale - at fair value
How should maretable equity securities classified as trading be reported?
Fair value, with holding gains and losses included in earnings.
How are HTM bonds reported?
Amortized Costs
Equity securities which are not intended to be sold in the near future should be classified as ? and gains/losses should be reported as ?
Classified as - AFS
Reported as - Component of other comprehensive income
Where are gains and losses on AFS securities reported?
As a separate component of other comprehensive income until realized
How is permanent impairment in value of an equity security treated?
You record it as a realized loss.
How are long term debt securities recorded.
Carrying amount
How is an other than temporary AFS impairment treated?
The asset must be written down to fair value and the loss is recognized on the income statement.
How are reversals of impairment losses treated under IFRS?
They are allowed and the increase would be booked to the current years income statement.
