Which of the following is true regarding the investments of private colleges in securities with determinable fair values?
A) Investments are to be carried at fair value; unrealized gains and losses are to be reported in the Statement of Activities along with realized gains and losses.
B) Investments are to be carried at fair value or amortized cost, depending upon whether the investments are in equity or debt securities.
C) Investments are to be carried at the lower of cost or market with unrealized losses reported in the Statement of Activities along with realized gains and losses.
D) None of the above.

Question

Quizplus · Accepted Answer

Private colleges are required to follow accounting standards for non-profit organizations (such as FASB ASU 2016-14), which require investments with determinable fair values to be carried at fair value. Unrealized gains and losses are reported in the Statement of Activities along with realized gains and losses.

Which of the Following Is True Regarding the Investments of Private