Mary Tokar is comparing a U.S. GAAP -based company to a company that uses IFRS. Both companies

Question:

Mary Tokar is comparing a U.S. -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. company financial statements. Can Mary conclude that the U.S. company has no unrealized gains or losses on its non-trading equity investments? Explain.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...