Disclosures – Summary

If the equity securities classified as available-for-sale are sold, then the realized gain/loss on such sale is transferred from the other comprehensive income (OCI) to the income statement and an entry is recorded to that effect. When the equity securities are...

Call Options – Summary

The accounting treatment of call options prima facie will depend upon the intention with which the call options are purchased—hedging or speculation (nonhedging). If the position is taken as a hedge against some other position, then the relevant accounting standards...

Preface

Accounting for Investments attempts to give an exhaustive treatment of various accounting entries that should be recorded by any entity holding any financial asset. Over the past two decades there have been several innovative financial instruments from the Street that...

Dr. K Sriram, Consulting Actuary

This book on “Accounting for Investments” is a pioneering work in demystifying the complex accounting mechanics associated with financial instruments – particularly the derivative instruments like options, futures, forwards and swaps. Based on his hard-won...

Disclosures – Objective Questions

Objective Questions 1. When securities are transferred from trading securities to available-for-sale, then a. Gain/loss recognized as unrealized should be reversed. b. Gain/loss recognized as unrealized should not be reversed. c. Gain/loss recognized as unrealized...

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