Which of the following classifications of passive investments has a difference in accounting treatment under IAS and U.S. GAAP? A) Trading securities B) Available-for-sale securities C) Held-to-maturity debt securities D) None of A, B or C
And for bonus points, what is the difference (if any)?
The US GAP requires unrecognized G/L to be in equity section under comprehensive income while teh IFS says it can be in either the B/S or I/S for unrecgonized G/L
Unrealized gains/losses can go directly into income for IAS, stays on bs first for US
B agreed with above
Yep, B - company can elect either comprehensive income in SH equity (BS) or record on IS. That one was too easy.