I felt like Schweser was clear regarding the difference between Available for Sale, Held for Trading, & Held to Maturity. Where does ‘designated @ Fair Value’ fit in, and what flows through to the income statement?
Designated Fair value is something that you can choose to do up front but can not reverse it. It then is treated just like held for trading…gains and losses hit the income statement. Also, like all passive investments any cash flows generated (int or div) go to the income statment