Marketable Securities

Question 1

What are securities that are bought and held principally for the purpose of selling them in the near term?

Answer 1

Trading securities

Question 2

What type of asset is trading securities?

Answer 2

Current asset

Question 3

What are securities that are securities(both debt and equity) not meeting the definitions of the other two classifications?

Answer 3

Available-for-sale securities

Question 4

What type of asset is available-for-sale securities?

Answer 4

General rule is noncurrent asset

Question 5

What are securities that are investments in debt securities?

Answer 5

Held-to-maturity securities

Question 6

What type of asset is Held-to-maturity securities?

Answer 6

General rule is noncurrent asset

Question 7

Trading and available-for-sale must be reported at?

Answer 7

Fair value

Question 8

Unrealized holding gains and losses onn trading securities are included in?

Answer 8

Earnings

Question 9

Unrealized holding gains and losses on available-for-sale securities are reported in?

Answer 9

Other comprehensive income

Question 10

Under IFRS, where is foreign exchange gains and losses on available-for-sale debt securities reported on?

Answer 10

Income statement

Question 11

Under IFRS, where is foreign exchange gains and losses on available-for-sale equity securities are reported in?

Answer 11

Other comprehensive income

Question 12

Held-to-maturity securities are valued at?

Answer 12

Amortized cost

Question 13

How is the unrealized holding gain or loss treated at the date of transfer from trading category?

Answer 13

Already recognized in earnings and shall not be reversed

Question 14

How is the unrealized holding gain or loss treated at the date of transfer to trading category?

Answer 14

Shall be recognized in earnings immediately

Question 15

How is the unrealized holding gain or loss treated at the date of transfer for debt security classified as held-to-maturity transferred to available-for-sale?

Answer 15

Shall be reported in other comprehensive income

Question 16

How is the unrealized holding gain or loss treated at the date of transfer for debt security classified as available-for-sale transferred to held-to-maturity?

Answer 16

Already reported in other comprehensive income

Question 17

Should the unrealized holding gain or loss be amortized when transferred from available-for-sale to held-to-maturity?

Answer 17

Yes

Question 18

How is the amount of the cost basis of the individual security is written down to fair value as the new cost basis and the amount of the write-down is accounted for?

Answer 18

Realized loss and included in earnings

Question 19

A sale of a security from any category results in a realized gain or loss and is reported on the?

Answer 19

Income statement for the period