GAAP requires companies to adjust their available-for-sale-securities to market value as of the balance sheet date.

Question

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GAAP (Generally Accepted Accounting Principles) requires companies to adjust their available-for-sale securities to market value as of the balance sheet date in order to accurately reflect their fair value on the financial statements. This adjustment is typically recorded as an unrealized gain or loss on the income statement and a corresponding adjustment to the carrying value of the securities on the balance sheet.

GAAP Requires Companies to Adjust Their Available-For-Sale-Securities to Market Value