All categories

2 years ago

What is the difference in accounting treatment of unrealized gains and losses across these three categories of investments

Business

1 answer:

hammer [34]2 years ago

6 0

Answer:

Unrealized gains and losses treatment:

Available for sale - recorded in OCI

Held till maturity - not recognized in financial statements until maturity

Held for Trading - Fair value through profit and loss

Explanation:

There are three categories of financial instruments. Available for Sale AFS, Held for trading HFT and Held till maturity HTM. Financial instruments are classified in these categories and then treatments is according to their classification. IAS 39 and IFRS 9 have provided complete guidelines for the treatment of the financial securities.

You might be interested in

During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were so

photoshop1234 [79]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Units manufactured= 2,400

Units sold= 2,000

Sales= $2,150,000

Manufacturing costs:

Direct materials= $960,000

Direct labor= $420,000

Variable manufacturing cost= $156,000

Fixed manufacturing cost= $288,000

Total= $1,824,000

Selling and administrative expenses:

Variable= $204,000

Fixed= $96,000

Total= $300,000

<u>Under the absorption costing, the cost of goods sold is calculated using the direct materials, direct labor, and total unitary manufacturing overhead.</u>

First, we need to calculate the cost of goods sold:

Unitary product cost= total cost/units produced

Unitary product cost= 1,824,000/2,400= $760

Now, we can determine the net operating income:

Sales= 2,150,000

COGS= (2,000*760)= (1,520,000)

Gross profit= 630,000

Total Selling and administrative expenses= (300,000)

Net operating income= 330,000

3 0

3 years ago

Question 7 (1 point)

krok68 [10]

Answer: John's Savings account balance declined by $50 and his Checking account balance increased by $50

Explanation:

The checking account statement shows that there was an online funds transfer from Savings into the checking account.

The checking account will therefore increase by $50 because money was transferred into it and therefore added to its balance. The savings account on the other hand, will reduce by the same amount because it transferred the money into another account.

7 0

3 years ago

Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs fro

forsale [732]

Answer: Informative Advertising

Explanation:

Informative Advertising is a form of advertising where a company gives some details about the benefits of using a product and somethings they do differently from their competitors in the market.

Minute Yoghurt needs to inform their market of the special steps of blending and cleaning they applying when producing their product.

7 0

3 years ago

Which of the following are true about productive efficiency? I. All available resources are employed in production. II. Workers

dalvyx [7]

Answer:

III. Points on the PPF curve are the only ones that achieve "productive efficiency"

Explanation:

What is true about productive efficiency is that Points on the PPF curve are the only ones that achieve "productive efficiency".

Productive efficiency is an economic term that is concerned with producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.

For it to be said that an economy is productively efficient means the economy must be producing on its production possibility frontier

Hence productive efficiency happens when production is reportedly occurring along a production possibility frontier (PPF).

7 0

3 years ago

If the U.K. exports 14 billion British Pounds of products, and imports 10 billion British pounds of products, its trade balanc

rodikova [14]

Answer:

D) 4 billion British pounds

Explanation:

Trade balance or balance of trade can be defined as the difference between a country's export and import at a particular period of time.

It could be a deficit or surplus.

Deficit trade balance refers to when the export of a country is less than it's import. This means more products are imported that exported.

Surplus trade balance refers to when export of a country is more than the import.

Import is the bringing in of goods from a foreign country. This means a particular country purchase goods from another country.

Export is the sending out of goods to a foreign country. That is the selling of goods to another country.

Trade balance= Export- Import

=14 billion British pounds- 10 billion British pounds

=4 billion British pounds

The trade balance that occurs here is surplus trade balance where export is more than import.

5 0

3 years ago