If a company chooses the option to report its bonds at fair value, then it reports changes in fair value in its income statement unless the changes are attributable to changes in credit risk.

Question

Quizplus · Accepted Answer

If a company chooses to report its bonds at fair value, changes in fair value are reported in the income statement, except for changes attributable to changes in credit risk, which are reported in other comprehensive income.

If a Company Chooses the Option to Report Its Bonds