Unrealized Gains and Losses from Fair Value Adjustments for Equity

question 12

True/False

Unrealized gains and losses from fair value adjustments for equity investments with no significant influence and a readily determinable fair value are reported as part of other comprehensive income, while gains and losses from the sale of these investments are reported in net income.

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Definitions:

Residual Income

The amount of income that an individual or company retains after accounting for all costs and expenses.

Producer Price Index

An economic indicator that measures the average changes in prices received by domestic producers for their output.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.