F3 - Marketable Securities

Question 1

At what cost should held-to-maturity securities be valued?

Answer 1

Amortized cost

Question 2

At what cost should available for sale securities be valued?

Answer 2

Fair value

Question 3

T/F: Trading securities, both debt and equity, are to be reported at fair value at the end of the current reporting period

Answer 3

True; it doesn’t matter if they are bonds or equity if they are to be sold in the near term