For financial assets classified as trading securities, how are unrealized gains and losses reflected in shareholders equity?

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For financial assets classified as trading securities, how are unrealized gains and losses reflected in shareholders’ equity?

A. They are not recognized.

B. They flow through income into retained earnings.

C. They are a component of accumulated other comprehensive income.

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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Question Posted: Feb 14, 2024 09:00 AM

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For financial assets classified as trading securities, how are unrealized gains and losses reflected in shareholders equity?

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The answer is B They flow through income into retained earnings For financial assets that are classi...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

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