Which one of the following statements with regard to marketable securities is incorrect?

A. In the trading portfolio of marketable equity securities, unrealized gains and losses are recorded on the income statement.

B. In the available-for-sale portfolio of marketable equity securities, unrealized gains and losses are recorded on the income statement.

C. The held-to-maturity portfolio consists only of debt securities.

D. Securities may be transferred from the held-to-maturity to the available-for-sale portfolio.

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Date Posted: 2015/02/22

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by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

B. In the available-for-sale portfolio of marketable equity securities, unrealized gains and losses are recorded on the income statement

by Iftikhar Hussain Shah , Senior Manager , Deloitte LLP

Option B is incorrect. Gain loss on AzFS investment is recognized in statement of other comprehensive income.

Unrealized gains and losses on trading securities should be presented in the:
Top Answer: Answer option (B) >>>>>>>>>>>>>> Income statement. ... See More

Answers (2)
Marketable securities are primarily?
Top Answer: short-term debt instruments. See More

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Money market securities .?
Top Answer: Ans:5. all of the above Money market securities are highly liquid securities with short term period and ... See More

Answers (9)
VaR is not enough to assess market risk of a portfolio. Stress testing is desirable because:
Top Answer: (iii) It helps in assessing risk due to abnormal movement of market parameters See More

Answers (7)

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