The Fair Value Adjustment account
A) is set up for each security in the company's portfolio.
B) relates to the entire portfolio of securities held by the company.
C) is closed at the end of each accounting period.
D) appears on the income statement as Other Expenses and Losses.

Question

Quizplus · Accepted Answer

The fair value adjustment account relates to the entire portfolio of securities held by the company. It is not set up for each security individually and is not closed at the end of each accounting period. It appears on the income statement as a component of comprehensive income.

The Fair Value Adjustment Account