Final answer:
Investments in securities held for an indefinite period are reported at fair value, with gains or losses recognized in net income or other comprehensive income depending on their classification as trading or available-for-sale securities.
Step-by-step explanation:
Investments in securities to be held for an unspecified period of time are reported on the balance sheet at their fair value. If the market value is readily available, this becomes the measure for reporting these long-term investments. Companies have to recognize any unrealized gains or losses on these securities in their net income if they are classified as trading securities. For securities classified as available-for-sale, the unrealized gains and losses are reported in other comprehensive income. It's important for businesses to regularly monitor the market conditions and reassess the fair values of such investments, ensuring accurate representation in their financial statements.