The recording of a marketable security depends,in large part,on management's intention with the investment.

Question

Quizplus · Accepted Answer

The recording of a marketable security depends on the intention of the management with the investment. If the security is held for trading purposes, it will be recorded at fair value through profit and loss account. Conversely, if it is held for long-term investment purposes, it will be recorded at fair value through other comprehensive income. Therefore, the intention of management plays a crucial role in the recording of marketable securities.

The Recording of a Marketable Security Depends,in Large Part,on Management's