Question: FASB Statement No. 115 changed accounting principles with respect to certain marketable securities. An important part of this Statement is the distinction between investments categorized

FASB Statement No. 115 changed accounting principles with respect to certain marketable securities. An important part of this Statement is the distinction between investments categorized
as trading, available for sale, or held to maturity.

Required
1. What types of securities are covered by this Statement?
2. Explain how the distinction between the three categories is made.
3. Discuss the distinction between realized and holding gains and losses on investments in debt and equity securities.
4. Explain how a company discloses realized and holding gains and losses on investments in equity securities on its financial statements.

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