Investments

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Question

Why are equity securities under ASC 321 never reported in OCI?

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Answer

ASC 321 routes changes through net income.

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Question

Why is a gain on transfer to trading recognized immediately?

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Answer

Because trading securities are measured at fair value through net income.

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Question

Why do trading debt securities use fair value with unrealized gains and losses in net income?

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Answer

They are held principally for near-term sale.

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Question

Why are dividends from an ASC 321 equity security recognized in net income?

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Answer

They are dividend income, not OCI.

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