How are investments in equity securities with readily determinable market values, and their related unrealized gains and losses, reported by a not-for-profit entity?
A) At lower of cost or market in the Statement of Financial Position, with unrealized losses in the Statement of Activities.
B) At fair value in the Statement of Financial Position, with unrealized gains and losses in the Statement of Activities.
C) At lower of cost or market in the Statement of Financial Position, with unrealized losses in Temporarily Restricted Net Assets.
D) At original cost in the Statement of Financial Position, with unrealized gains and losses in the Statement of Activities.
E) At original cost in the Statement of Financial Position, with unrealized gains and losses disclosed in the notes to the financial statements.

Question

Quizplus · Accepted Answer

Investments in equity securities with readily determinable market values are reported at fair value in the Statement of Financial Position, and unrealized gains and losses are reported in the Statement of Activities for not-for-profit entities.

How Are Investments in Equity Securities with Readily Determinable Market