Reporting investments at fair value is
A) applicable to stock securities only.
B) applicable to debt securities only.
C) applicable to both debt and stock securities.
D) a conservative approach because only losses are recognized.

Question

Quizplus · Accepted Answer

Reporting investments at fair value is applicable to both debt and stock securities. This is because fair value is the most accurate and reliable measure of the value of an investment. It allows investors to fairly assess the performance of their portfolio and make informed investment decisions. This approach also allows for gains and losses to be recognized equally, rather than only recognizing losses as in the case of a conservative approach.

Reporting Investments at Fair Value Is