- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 19. Understanding Balance Sheets
- Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
CFA Practice Question
The unrealized gains and losses arising from changes in the market value of available-for-sale securities are reported under U.S. GAAP and International Financial Reporting Standards (IFRS) in the ______.
A. equity section for both
B. equity section for U.S. GAAP and the income statement for IFRS
C. income statement for U.S. GAAP and the equity section for IFRS
Explanation: Under both U.S. GAAP and IFRS the unrealized gains and losses arising from carrying available-for-sale securities at market value are reported in equity as part of accumulated other comprehensive income.
User Contributed Comments 1
| User | Comment |
|---|---|
| farhan92 | this was a calculated shot in the dark |