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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.

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When meeting a CEO whom he hoped to win over as a new client, James, dressed in an Armani suit, introduced himself from across h

Alexxandr [17]

Answer: Wearing high status clothing

Explanation: In simple words, Non verbal communication refers to the act of making any remark or statement without using language. It could be done by using body posture, dressing sense or eye contact etc.

In the given case, James tried to persuade his clients by showing that he belongs to the high class of the society and maintains a high status. He did so by wearing the expensive clothes. Such persuation will result in perception that James is hardworking and trusted.

Hence from the above we can conclude that the correct option is B.

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3 years ago

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The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage i

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The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included Option A greed and the wish to inflate their own earnings.

<h3>What is unethical behavior?</h3>

unethical behavior bare behavior that is contrary to the rules and principle of the organization.

In most cases it is usually as a result of greed and the wish to inflate their own earnings.

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1 year ago

Who Done It Mystery Theater sells tickets for dinner and a show for $ 40 each. The cost of providing dinner is $ 22 per ticket a

Readme [11.4K]

Answer:

$18

Explanation:

The contribution margin per patron is the ratio of the total contribution to the number of patrons. The total contribution is the difference between the total sales and the total variable cost.

Hence, the contribution per matron may also be derived as the difference between the sales per patron and the variable cost per patron.

The variable cost here is the cost of providing dinner per ticket as such,

Contribution margin per patron

= $40 - $22

= $18

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3 years ago

On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $51.5 million. KT’s net income for the

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Answer and Explanation:

a. The Journal entries are shown below:-

Investment - Capital stock Dr, $51.5 million

To Cash $51.5 million

(Being investment is recorded)

Unrealized holding gain or loss Dr, $15.5 million ($51.5 - $36.0)

To Fair value adjustment $15.5 million

(Being fair value adjustment is recorded)

b. Unrealized holding gain or loss Dr, $5.5 million ($51.5 - $30.5 - $15.5)

To Fair value adjustment $5.5 million

(Being fair value adjustment before sale is recorded)

Cash Dr, $30.5 million

Unrealized holding gain or loss Dr, $21 million

To Investment - Capital stock $51.5 million

(Being sale of investment is recorded)

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3 years ago

The factor-price equalization theory and transportation costs Which of the following statements about the factor-price equalizat

abruzzese [7]

Answer:

B and C

Explanation:

The correct statements about the factor-price equalization and the effects of transportation costs are:

Free trade, in the absence of transportation costs or other barriers to trade, tends to equalize product prices and factor prices.
Transportation costs prevent product prices from equalizing.

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3 years ago