Asked by Christina Silverio on Jun 14, 2024
Verified
Unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive income.
Unrealized Gains
Increases in the value of an asset that has not been sold, and thus the gain has not been "realized" through a transaction.
Comprehensive Income
The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.
Available-For-Sale Securities
Financial investments that a company holds with the intent of selling for a profit but are not actively traded or held to maturity.
- Discern the discrepancies in accounting approaches for trading, available-for-sale, and equity securities.
- Comprehend the handling of unrealized losses, particularly their influence on taxation and total income.
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Learning Objectives
- Discern the discrepancies in accounting approaches for trading, available-for-sale, and equity securities.
- Comprehend the handling of unrealized losses, particularly their influence on taxation and total income.
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