Investments Flashcards
How are trading securities recorded?
On the balance sheet at Fair Value, as current assets
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 Available-For-Sale securities recorded?
On the balance sheet, at fair value as either current or non-current assets.
Unrealized gains/losses are included in OCI (Other Comprehensive Income)
If reclassified as held-to-maturity, 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 recorded?
On the balance sheet at amortized cost as current or non-current assets.
Unrealized gains or losses are not applicable.
If reclassified as available-for-sale, unrealized G/L go to Stockholder’s Equity
If reclassified as trading securities, unrealized G/L recognized in current period
