For available-for-sale securities, companies must disclose whether the conversion of convertible securities of the investee would have a significant effect on the reported income from the investment.

Question

Quizplus · Accepted Answer

Companies are not required to disclose the potential impact of conversion of convertible securities on reported income for available-for-sale securities. This requirement is more relevant for investments classified as equity method investments.

For Available-For-Sale Securities, Companies Must Disclose Whether the Conversion of Convertible