Can anyone break this paragraph down for me into an easier to understand way? Not sure if I am just coming to the end of my day and my brain is tired, but I am having a hard time making sense of this paragraph from Kaplan based on the way its worded. Is it just saying for IFRS on available-for-sale debt the unrealized gain/loss is reported on the income statement where as its reported on the balance sheet for GAAP? Thanks in advance!
“The treatment under IFRS is similar to U.S. GAAP, except for unrealized gains or losses that result from foreign exchange movements. Foreign exchange gains and losses on available-for-sale debt securities are recognized in the income statement under IFRS. The entire unrealized gain or loss is recognized in equity under U.S. GAAP. For available for-sale equity securities, the treatment under IFRS is similar to the treatment under U.S. GAAP.”