Available-for-sale securities are investments in either trading securities or investments for which the company chooses to apply the fair value option.

Question

Quizplus · Accepted Answer

Available-for-sale securities are a separate category of investments that are not classified as trading securities or held-to-maturity securities. They are reported at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income.

Available-For-Sale Securities Are Investments in Either Trading Securities or Investments