INVESTMENTS Flashcards
How are Available-For-Sale securities recorded on the Balance Sheet?
“At Fair value as either Current or Non-current assets.
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How are Available-For-Sale security Unrealized G/L treated?
“Included in OCI (Other Comprehensive Income)
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How are Unrealized G/L for Available-For-Sale securities that are reclassified to Held-to-Maturity or Trading Securities treated?
“HTM - Stockholder’s Equity
/ Trading Securities - Current Period.
”
How are Held-to-Maturity securities recorded on the Balance Sheet?
“Amortized cost as Current or Non-current assets.
If reclassified as AFS - Unrealized G/L go to Stockholder’s Equity
If reclassified as Trading Securities - Unrealized G/L recognized in Current Period
”
How are Held-to-Maturity securities Unrealized G/L treated?
“Trick question - Unrealized gains or losses are not applicable because they are HTM
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How are Trading Securities recorded on the Balance Sheet?
“At Fair Value as a Current Asset
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.”
How are Trading Securities Unrealized G/L treated?
“Recorded on the Income Statement
If they are reclassified as HTM or AFS - there is no effect upon transfer.”
