9th Edition

ISBN: 9781260216141

Author: SPICELAND

Publisher: MCG CUSTOM

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Chapter 12, Problem 12.27Q

(Based on Appendix 12B) Reporting an investment at its fair value requires adjusting its carrying amount for changes in fair value after its acquisition (or since the last reporting date if it was held at that time). Such changes are called unrealized holding gains and losses because they haven’t yet been realized through the sale of the security. If a security is classified as available-for-sale, and an unrealized holding loss is viewed as giving rise to an other-than-temporary (OTT) impairment, how is it reported in the financial statements?

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Chapter 12, Problem 12.26Q

Chapter 12, Problem 12.28Q

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Chapter 12 Solutions

INTERMEDIATE ACCOUNTING(LL)-W/CONNECT

Ch. 12 - All investments in debt securities are classified...Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

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Solution Summary: The author explains the reporting of OTT impairment due to unrealized holding loss for an AFS security.

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