Which of the following statements is TRUE under IAS 39?

Question

Quizplus · Accepted Answer

Under IAS 39, unrealized gains and losses on available-for-sale investments are included in Other Comprehensive Income. This means that these gains and losses are not immediately recognized in the income statement, but are instead recorded as a separate component of equity. They will be recognized in the income statement when the investment is sold or otherwise disposed of. Unrealized gains and losses on held-for-trading securities, on the other hand, are immediately recognized in the income statement. All unrealized gains and losses on equity investments are not flow through Other Comprehensive Income, but are instead recorded in the income statement. Other Comprehensive Income is not included in Retained Earnings, but is presented as a separate component of equity on the balance sheet.

Which of the Following Statements Is TRUE Under IAS 39