Asked by
Jenny Esquer
on Dec 05, 2024
Verified
An unrealized holding loss is reported on the income statement when the fair value of a debt trading security is less than its fair value reported in the prior period.
Unrealized Holding Loss
An unrealized holding loss occurs when an investment's value decreases, but the investment has not yet been sold by the holder.
Debt Trading Security
A financial instrument representing a debt that can be bought or sold in the securities market.
- Acquire knowledge on how unrealized holding gains and losses are accounted for in different categories of investments.
- Separate the concepts of realized and unrealized gains and losses and their impact on financial documentation.
Verified Answer
DB
Learning Objectives
- Acquire knowledge on how unrealized holding gains and losses are accounted for in different categories of investments.
- Separate the concepts of realized and unrealized gains and losses and their impact on financial documentation.