CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

The unrealized gains and losses on available-for-sale securities are ______
A. reported on individual securities.
B. reported on the portfolio of investments.
C. not reported at all.

User Contributed Comments 6

User Comment
rishrish can anybody explain
I think both 1 and 2 are correct.
volkovv available-for-sale securities are treated as a portfolio. So lets say unrealized gain on security A = 3,000 and unrealized loss on security B = 1,000; then only 2,000 unrealized gain would be recorded but no individual gains/losses will be recognized.
aakash1108 i thought they by pass net income and are included in comprehensive income!
boddunah unrealised gains/losses on available for sale securities should bypass income statement and added directly to equity.and reported part of oci
meeravenk Yes they are a part of the OCI but that is not the question here
farhan92 you won't list the gain and or loss of all individual securities and they would be grouped so B makes sense.
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