Unrealized gains and losses related to available-for-sale/non-trading equity investments are reported in other comprehensive income under
A) GAAP only.
B) IFRS only.
C) Both GAAP and IFRS.
D) Neither GAAP or IFRS.

Question

Quizplus · Accepted Answer

Both GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) require unrealized gains and losses on available-for-sale (AFS) or non-trading equity investments to be reported in other comprehensive income. This treatment allows the earnings to reflect current operating performance without the volatility of unrealized gains and losses.

Unrealized Gains and Losses Related to Available-For-Sale/non-Trading Equity Investments Are