Question: Mary Tokar is comparing a U S GAAP based company to a
Mary Tokar is comparing a U.S. GAAP-based company to a company that uses IFRS. Both companies report non-trading equity investments. The IFRS company reports unrealized losses on these investments under the heading “Reserves” in its equity section. However, Mary can find no similar heading in the U.S. GAAP company financial statements. Can Mary conclude that the U.S. GAAP company has no unrealized gains or losses on its non-trading equity investments? Explain.
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