- CFA Exams
- CFA Level I Exam
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 13. Intercorporate Investments
- Subject 2. Investments in Financial Assets
CFA Practice Question
One feature common to both the trading and available for sale classifications is:
A. Investments are reported at market value.
B. Unrealized gains (losses) are reported in current income.
C. Unrealized gains (losses) are reported in other comprehensive income.
Explanation: All investment securities for which a public market exists are reported at market value on the balance sheet. This applies to both available-for-sale and trading classifications.
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