Under the Provisions of Statement of Financial Accounting Standards No

question 77

Multiple Choice

Under the provisions of Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities--Including an amendment of FASB Statement No. 115,"

• A) the election of the fair value option for investment securities classified as available-for-sale securities would result in unrealized gains and losses on these securities being included in other comprehensive income.
• B) the election of the fair value option for investment securities classified as trading securities would result in unrealized gains and losses on these securities being included in other comprehensive income.
• C) the election of the fair value option for investment securities classified as held-to-maturity securities would result in unrealized gains and losses on these securities being included in earnings in the income statement.
• D) the election of the fair value option for investment securities currently classified as trading, available-for-sale, or held-to-maturity is not available and can only be applied to new securities that an entity purchases.