Question

Major note disclosures for investments _____.

-include methods and assumptions used to determine fair value
-include the policy for determining investments accounted for at fair value
-do not include the amount of realized gains, as this is disallowed by GASB

Answer 1

Major note disclosures for investments in accounting include methods and assumptions for fair value determination, the policy for determining investments accounted for at fair value, and exclude the amount of realized gains.

Step-by-step explanation:

Major note disclosures for investments in the context of accounting for financial reporting. These disclosures are required to provide transparency and relevant information to users of the financial statements. Major note disclosures for investments include:

1. Methods and assumptions used to determine fair value: This includes the techniques and parameters used to calculate the fair value of investments. For example, market prices, discounted cash flow models, or comparison to similar investments in the market.
2. Policy for determining investments accounted for at fair value: This outlines the organization's policy on determining which investments are accounted for at fair value. It may specify the criteria or thresholds for classifying investments as fair value or cost method.
3. Do not include the amount of realized gains: Realized gains, which result from the sale of investments, are not included in the major note disclosures for investments.