8) What type of investments can be classified as “Hold to Maturity” and how are they...

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Accounting

8) What type of investments can be classified as “Hold toMaturity” and how are they reported/valued on the balancesheet.
9) What type of investments can be classified as “Trading” or“Available for Sale”? How are they reported/valued on the balancesheet?
10) How/where are unrealized gains/losses reported for a)Trading securities, b)Available for sale securities?
11) How/where are realized gains/losses reported for a) Tradingsecurities, b)Available for sale securities?
12) Explain the difference between Level 1, Level 2 and Level 3fair value measurements.

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8type of investments can be classified as Hold to Maturity and how are they reported in balance sheet The most common form of heldtomaturity investments are bonds Since stocks or shares in a company do not have a maturity date they do not qualify as heldtomaturity securities Heldtomaturity securities are only reported as current assets if they have a maturity date of one year or less The biggest difference between held to maturity securities and the other security types mentioned above is in their accounting treatment As opposed to being recorded and updated on the companys balance sheet according to the securitys fair market value held to maturity securities are recorded at their original purchase cost It means that from one accounting period See Answer

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