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Basic Question 4 of 10
Debt securities that are bought and held primarily for sale in the near term are classified as
B. held-to-maturity.
C. trading.
A. available-for-sale.
B. held-to-maturity.
C. trading.
User Contributed Comments 2
| User | Comment |
|---|---|
| akirchner1 | I initially picked A) available for sale, but I now see that the phrase "held primarily for sale" more accurately reflects C) held for trading |
| Felio | The key words here are ''held primarily for sale'' and ''near term''. While ''held primarily for sale'' characterizes both trading and available-for-sale securities, the ''near term'' is only for trading securities. All other securities that you don't intend to sell in the near-term (or you don't intend to sell and repurchase very frequently) should be classified as available-for-sale |
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Barnes
Learning Outcome Statements
describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for 1) investments in financial assets, 2) investments in associates, 3) joint ventures, 4) business combinations, and 5) special purpose and variable interest entities;
distinguish between IFRS and US GAAP in their classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities;
analyze how different methods used to account for intercorporate investments affect financial statements and ratios.
CFA® 2025 Level II Curriculum, Volume 2, Module 10.