I’m trying to apply my studying to real life examples… A friend and I were looking over BAC’s financials, check out the Balance Sheet: http://finance.yahoo.com/q/bs?s=BAC At the bottom, there’s a negative (11,238,000) in other stockholder’s equity. On AFS securities, it’s FMV on the Balance Sheet and then Interest, Dividends, and Realized/Unrealized Gain Losses in the Income Statement. Here’s a blurb from their annual report: All other debt securities that management has the intent and ability to hold for the foreseeable future are classified as available-for-sale (AFS) and carried at fair value with net unrealized gains and losses included in accumulated OCI on an after-tax basis.
I have the stock, I love BAC’s performance so far:)
That’s great for you! Is the OCI (Other Comprehensive Income) just kind of the holding tank for net changes in the FMV? That’s kind of what I’m thinking…
yeah IT is part of OCI, as far as I know, that’s where they could cook the book, hehe
Nevermind–I’m an idiot. I was thining about available-for-trading, not available-for-sale. Unrealized gain/loss is reported on the BS for AFS securities–my fault.
yeah, goes straight to other comprehensive income…
which is part of equity. I’m having a brain fart right now. If you have a loss on AFS --> marketable securities under non-current assets would go down and then be balanced by the loss reported by other comprehensive income right? No tax adjustment because we haven’t sold anything… oh I am losing it 