- 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
Unrealized holding gains and losses are included in an investor's earnings for:
A. Trading Securities = Yes, Securities Available-For-Sale = No.
B. Trading Securities = Yes, Securities Available-For-Sale = Yes.
C. Trading Securities = No, Securities Available-For-Sale = Yes.
Explanation: Unrealized holding gains and losses are included in an investor's earnings for trading securities; they are reported as a component of other comprehensive income for available-for-sale securities.
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan2 | For trading securities, they are reported as part of net income; for AFS securities, they are reported as part of comprehensive income. |
| mrpman | This question ask whether they are created included in the investor's EARNINGS. HAS ANY EVER, EVER, EVER HEARD ANYONE REFER TO OTHER COMPREHENSIVE INCOME AS EARNINGS? |