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Basic Question 7 of 8
Which item is included in the comprehensive income but not in the net income?
II. Unrealized gains/losses from trading securities.
III. Unrealized gains/losses from available-for-sale securities.
I. Unrealized gains/losses from held-to-maturity securities.
II. Unrealized gains/losses from trading securities.
III. Unrealized gains/losses from available-for-sale securities.
User Contributed Comments 11
| User | Comment |
|---|---|
| poomie83 | Could someone provide an explanation |
| sjurrens | Just a definition. It's how the firm decides to define the security. Check accounting notes for types of securities (those listed in the question are the 3) |
| charomano | Unrealized gains/losses from HTM are not reported in neither Comprehensive Income nor Net Income |
| sogah | what about ii |
| NIKKIZ | Held-to-maturity; - premiums/discounts are amortized and amortized amount posted into the income statement. Available-for-sale - gains/losses posted to Other Comprehensive Income. Held-For-Trading; gains/losses marked to market and posted in the income statement. Note that for realized gains (from the actual sale of an investment) the gains/losses become realized for any investment and are always included in the income statement. |
| johntan1979 | Thanks NIKKIZ! |
| 2014 | Thanks NIKKIZ |
| johntan1979 | Unrealized gains/losses for HTM are NOT REPORTED! Please be aware of this. |
| robbiecow | HTM: Transaction is on the BS (reported @ amtz cost) AFS: Fair value (gains & losses to Other Comprehensive Inc.) TS: Fair value (gains & losses to Oper. Income) Think of what the intent of each one is. |
| jfermin315 | robbie great thanks!! Flash cards are clutch and you just added to my stack |
| khalifa92 | you have to understand the difference between those three to get the whole picture |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
identify financial reporting choices and biases that affect the quality and comparability of companies' financial statements and explain how such biases may affect financial decisions;
evaluate the quality of a company's financial data and recommend appropriate adjustments to improve quality and comparability with similar companies, including adjustments for differences in accounting standards, methods, and assumptions;
evaluate how a given change in accounting standards, methods, or assumptions affects financial statements and ratios;
analyze and interpret how balance sheet modifications, earnings normalization, and cash flow statement related modifications affect a company's financial statements, financial ratios, and overall financial condition.
CFA® 2025 Level II Curriculum, Volume 2, Module 15.