Financial Reporting and Analysis Q118
| Category | Original Cost in €as at the Year End,2012 | Fair Market Valuein € as at the Year End, 2013 |
| Held for trading | 10000000 | 10,500,000 |
| Available for sale | 5000000 | 5500000 |
If the company reports under IFRS instead of U.S. GAAP, its net income will
most likely be:
most likely be:
- Option : A
- Explanation : Whether securities are classified as held for trading or available for sale, they are measured at their fair value on the balance sheet, but all gains/losses on held for trading securities are reported on the income statements. The unrealized gains/losses on available for sale securities are reported as part of equity. However, this treatment is the same under both IFRS and U.S. GAAP.
