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inn [45]
2 years ago
13

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.

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If an organizational manual exists, a description of the division of work and the position shown on the organization chart will
allsm [11]
If an organizational manual exists, a description of the division of work and the position shown on the organization chart will be given in the manual or will be located on the company's intranet.

A) True
7 0
3 years ago
Assume the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans becaus
seropon [69]

Answer: Cyclical asymmetry

Explanation:

In economics, Cyclical asymmetry is defined as

A value that represents a large imbalance in economic factors due to genuine cyclical reactions by a country or market.

It includes employment rates,  interest rates, debt retention, bond strengths, or stock market imbalances.

If we assume the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans because economic conditions are bad.

Since this happens due to the cyclical reaction of the government.

This means that,

This situation is a problem of <u>cyclical asymmetry</u>.

8 0
2 years ago
If purchasing power parity​ holds, the price level in Turkey is​ 210, and the nominal exchange rate​ (E) = 0.84 Turkish lira ​=
g100num [7]

Answer:

c. 250

Explanation:

Since; Turkish lira ​= 1 Brazilian​ real

and exchange rate​ (E) = 0.84

Considering that Brazil is the home country

The price level in Turkey = 210

∴ Brazil price level = 210 / 0.84 = 250 real

7 0
2 years ago
Norwood, Inc. purchased a crane at a cost of $80,000. The crane has an estimated residual value of $5,000 and an estimated life
qwelly [4]

Answer:

Book value= $51,875

Explanation:

Giving the following information:

Purchase price= $80,000

Salvage value= $5,000

Useful life= 8 years

<u>First, we need to calculate the annual depreciation under the straight-line method:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (80,000 - 5,000) / 8

Annual depreciation= $9,375

<u>Now, we can determine the book value at the end of 2019:</u>

Book value= purchase price - accumulated depreciation

Book value= 80,000 - (9,375*3)

Book value= $51,875

8 0
2 years ago
Which phrase best completes the list?
soldi70 [24.7K]
It would be Ctax rates set by private companies plsmark braliest
5 0
2 years ago
Read 2 more answers
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