Is schweser wrong on Held-to-maturity dividends?

CFA Level I
#1

Page 95 of Secret Sauce says: “Dividend and interest income, and realized gains and losses, are recognized in the income statement for all three classifications of securities.” This sounded wrong to me off the bat, since I recalled that dividend is recognized on I/S only on Trading and AFS. Sure enough, on the very next page is a chart that shows just this (dividends recognized on I/S for trading and AFS, but not on H2M). What gives?

#2

as long as it says “realized”… , is recognized in I/S. Whats not shown in I/S is the unrealized gains(losses) or M2M which hit equity directly at trading. So is the case with A4Sales. Only traded are M’ed2M. 5% significant.

#3

english?

#4

Dividends are dividend income and ARE included in I/S. So are realized gains/losses regardless of classification.

#5

Best nickname ever. Someone should have told me before I signed up

#6

For sure, that name is mint!

#7

CFA=NOLIFE Wrote: ------------------------------------------------------- > Dividends are dividend income and ARE included in > I/S. So are realized gains/losses regardless of > classification. Realized gains and losses are included for Trading, AFS, H2M. Dividend income are including for Tading, AFS, H2M, but NOT for H2M. correct?

#8

Any realized should not escape income statement… period. Be it dividends on H2M. Only unrealized are at question here…

#9

H2M can’t have dividend income, it’s for debt only, interest income from H2M would be in I/S tho