unrealized/realized gains and loses for marketable securities

CFA Level I
#1

If someone would be kind enough to break down the difference for how the different marketable securities are reported on the balance sheet and income statement? also the difference between realized and unrealized gains and losses. this is specifically for held till maturity, available for sale, and trading securities

#2

Held to maturity is goes to the balance sheet - because it is held at historical cost!! Trading securities - goes to Income statement ( are included in net income) Available for sale securities- Goes to comprehensive income!!

#3

Thanks but can you please elaborate on unrealised and realised? and if they are unrealized where are they reported? and if they are realized where are they reproted? the the difference between unrealized and realized? from my understanding unrealized is when you sell it ? and realized is change in market value? or is it the other way around?

#4

realized is when you have sold it – ie when you have locked in the gains/losses. Realized gains/losses are ALWAYS shown in the income statement, regardless of how the securities were categorized. the unrealized gains and losses are where the differences are: held for trading – income statement available for sale – equity, through other comprehensive income held to maturity – not recognized in financial statements.

#5

Thank you! that explains it very well !

#6

And there is no GAAP/IFRS difference here, right? Also, the interest income will always go through the IS.

#7

for held to maturity i believe so