- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 22. Understanding Balance Sheets
- Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
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. |