Investments in debt securities available for sale are reported at:

Question

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Investments in debt securities available for sale are reported at fair value on the reporting date. This is in accordance with generally accepted accounting principles (GAAP) and is intended to provide users of financial statements with up-to-date information on the value of the investments. Historical cost is not used for these investments because it does not reflect changes in the market value of the securities. Discounted present value is used for certain long-term liabilities, not investments. Lower of cost or market is used for inventory valuation, not investments in securities available for sale.

Investments in Debt Securities Available for Sale Are Reported At