The Carrefour Group reported the following description of its available-for-sale investments. Assets available for sale are . . . valued at fair value. Unrealized . . . gains or losses are recorded as shareholders’ equity until they are sold. In a recent year, Carrefour’s financial statements reported €18 million in net unrealized losses (net of unrealized gains), which are included in the fair value of its available-for-sale securities reported on the balance sheet. 1. What amount of the €18 million net unrealized losses, if any, is reported in the income statement? Explain. 2. If the €18 million net unrealized losses are not reported in the income statement, in which statement are they reported, if any? Explain.
The Carrefour Group reported the following description of its available-for-sale investments.
Assets available for sale are . . . valued at fair value. Unrealized . . . gains or losses are recorded as shareholders’
equity until they are sold.
In a recent year, Carrefour’s financial statements reported €18 million in net unrealized losses (net of unrealized
gains), which are included in the fair value of its available-for-sale securities reported on the
1. What amount of the €18 million net unrealized losses, if any, is reported in the income statement? Explain.
2. If the €18 million net unrealized losses are not reported in the income statement, in which statement
are they reported, if any? Explain.
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