CFAI text problems-- FSA RD 21 page 58

#1 – I see how they calculate all the dividend income, unrealized g/l, etc. But how do they know investments X and Z are available for sale securities. Why do they assume that? Why couldnt it have been trading securities?

they have a note there in parentheses that says assume that none of the securities are for trading purposes. if they are not trading securities, are stocks, and there is no control or influence that warrants the use of consolidation or the equity method. available for sale is all that it can be.

I did not see that little note in (). Hahaa…i’m so blind thanks.