All of the following statements regarding accounting for trading securities under U.S. GAAP are true except:
A) An unrealized gain or loss from a change in fair value is reported on the income statement.
B) A realized gain or loss is recorded when the securities are sold and reported on the income statement.
C) Any prior period fair value adjustment to the portfolio is not used to compute the gain or loss from sale of individual transactions.
D) When the period-end fair value adjustment for the portfolio of trading securities is computed, it includes the cost and fair value of any securities sold.
E) The entire portfolio of trading securities is reported at fair value.
Correct Answer:
Verified
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