Governmental investments in equity securities that have a determinable fair value are to be reported at fair value and any unrealized gains and losses are to be reported separately from realized gains and losses in the governmental operating statements.

Question

Quizplus · Accepted Answer

GASB standards require equity securities that have readily determinable fair values to be reported in the balance at fair value. If a government has sufficient investments in a company to justify the equity method of accounting, then the equity method of accounting would be used. Realized gains and losses are not reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Position.

Governmental Investments in Equity Securities That Have a Determinable Fair