The income statement reports changes in fair value for which type of investment securities?
Multiple Choice
Trading securities.
Securities reported under the equity method.
Held-to-maturity securities.
Available-for-sale securities.
Homework Answers
Correct answer is Option (A) Trading Securities.
The Change in fair value of Security reported under equity method and held-to-maturity are not reported in Balancesheet. Though the Available for sale security fair value is reflected, it is accounted in other comprehensive income under equity section. It is not reflected in income statement.
The trading securities are valued and the change in those are reflected in Income statement.
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