Passive Investments Q. (IAS vs. US GAAP)

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.