Reporting investments at fair value is

Question

Quizplus · Accepted Answer

Reporting investments at fair value is applicable to both debt and share securities. This means that the value of both types of investments is reported at their current fair market value, rather than their historical cost. This provides users of financial statements with more relevant information about the value of the investments. Additionally, reporting at fair value does not necessarily only recognize losses, but can also recognize gains if the value of the investment has increased.

Reporting Investments at Fair Value Is