- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 10. Intercorporate Investments
- Subject 2. Investments in Financial Assets
CFA Practice Question
Under U.S. GAAP, the unrealized gain (loss) at the date of transfer is recognized in income for transfers from:
II. held-to-maturity to available-for-sale.
III. available-for-sale to trading.
I. available-for-sale to held-to-maturity.
II. held-to-maturity to available-for-sale.
III. available-for-sale to trading.
Correct Answer: III only
User Contributed Comments 3
| User | Comment |
|---|---|
| noonah | Nothing recognized in net income for any transfers to held-to-maturity. |
| sjurrens | II effects component of equity, not income |
| czar | For l. The difference is amortized For ll. The unrealized gains/losses go to Comprehensive Income |