Under current GAAP for marketable securities, trading securities and available-for-sale securities are reported at their fair value, but held-to-maturity securities are reported at their amortized cost.
Required:
Explain why there is a difference in the reporting requirements for these three classifications of marketable securities.

Question

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The Answer of Under current GAAP for marketable securities, trading securities and available-for-sale securities are reported at their fair value, but held-to-maturity securities are reported at their amortized cost.
Required:
Explain why there is a difference in the reporting requirements for these three classifications of marketable securities.

Under Current GAAP for Marketable Securities, Trading Securities and Available-For-Sale