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...

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...

Disclosures – Theory Questions

Theory Questions Can the securities that are classified once be transferred to other category? If so, what precautions should be taken to adjust the unrealized gains or losses? How is the impairment of securities presented in the balance sheet? What is the treatment...

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