FAR4 Flashcards
When an investment is reclassified from AFS to HTM, the difference of cost and FMV is recognized in…
Other Comprehensive Income
Investments in Marketable equity securities that an entity does not intend to sell in the near future are accounted for as…
Available for Sale
An investment in marketable equity securities, regardless of whether they are classified as trading or AFS is reported at…
Fair Market Value
Unrealized gains/losses on trading securities are recognized in…
the period of the change, in net income.
Unrealized gains/losses on AFS securities will be…
reported in other comprehensive income, NOT in net income.
When bonds are classified as HTM they are recorded at cost with the discount/premium being…
amortized as an adjustment to income
When an entity elects the fair value option, all changes in value are recognized in…
Income, regardless of AFS, Trading, or HTM.
On the balance sheet date a trading security is reported at…
Market Value
On the balance sheet date an AFS security is reported at…
Market Value
On the balance sheet date a HTM security is reported at…
Amortized cost
