How Are Investments in Equity Securities with Readily Determinable Market

question 60

Multiple Choice

How are investments in equity securities with readily determinable market values, and their related unrealized gains and losses, reported by a not-for-profit entity?

• A) At lower of cost or market in the Statement of Financial Position, with unrealized losses in the Statement of Activities.
• B) At fair value in the Statement of Financial Position, with unrealized gains and losses in the Statement of Activities.
• C) At lower of cost or market in the Statement of Financial Position, with unrealized losses in Temporarily Restricted Net Assets.
• D) At original cost in the Statement of Financial Position, with unrealized gains and losses in the Statement of Activities.
• E) At original cost in the Statement of Financial Position, with unrealized gains and losses disclosed in the notes to the financial statements.

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