Available-for-sale investments: Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments. They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income. Other comprehensive income is not included in net income. Other comprehensive income is shown after net income in the income statement. The value that will be reported in net income for the adjustment

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Chapter 15, Problem 7QC

To determine

Concept Introduction:

Available-for-sale investments:

Available-for-sale investments are the investments which neither fall in the category of trading investments nor fall in the category of held-to-maturity investments.

They are recorded at fair market value. The effects of fluctuations in the prices i.e. increase or decrease in prices at the year-end are adjusted and unrealized gain or loss due to these fluctuations are transferred to other comprehensive income.

Other comprehensive income is not included in net income. Other comprehensive income is shown after net income in the income statement.

The value that will be reported in net income for the adjustment

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