Available-for-sale securities are reported at fair value on the balance sheet.

Available-for-sale Securities

Financial assets that are purchased with the intention of selling them before they reach maturity, if beneficial.

Fair Value

Fair Value is an accounting term used to describe the estimated price of an asset or liability that would be agreed upon in an orderly transaction between market participants at the measurement date.

Acquire knowledge on how different types of securities are classified and reported in the balance sheet.
Comprehend the consequences of fair value revisions on the accounting of available-for-sale and trading securities.

Verified Answer

Zybrea KnightJul 03, 2024

Final Answer :

True

Explanation :

Available-for-sale securities are reported at fair value on the balance sheet, with unrealized gains or losses reported in other comprehensive income until they are sold.

Learning Objectives

Acquire knowledge on how different types of securities are classified and reported in the balance sheet.
Comprehend the consequences of fair value revisions on the accounting of available-for-sale and trading securities.

Available-for-sale securities are reported at fair value on the balance sheet.

Definitions

Learning Objectives

Learning Objectives

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