Question

Zinc Company does not elect to use the fair value option for reporting financial assets. An unrealized gain, net of tax, on Zinc's held-to-maturity portfolio of marketable debt securities should be reflected in the current financial statements as _________.

Answer 1

Answer:

a footnote or parenthetical disclosure

Explanation:

Based on the information provided within the question it can be said that in this scenario this only needs to be included as a footnote or parenthetical disclosure. Mainly due to the fact that the choice does not affect the financial statements, therefore it only needs to be added to provide extra clarity on the information within the financial statement.