Final answer:
The statement is false; companies are required to disclose transfers between investment categories due to their impact on financial reporting and to ensure transparency for investors.
Step-by-step explanation:
The statement that routine transfers of debt and equity investments among the trading, available for sale, and held to maturity portfolios need not be disclosed in the financial statements is false. Transfers between these categories do have accounting implications and may affect financial reporting. For example, when an investment is transferred into the trading category, it must be reported at fair value, and subsequent gains or losses are reported in earnings. Conversely, transfers out of trading halt such income statement impacts.
The disclosure of such transfers is essential for readers of financial statements to understand the company's investment strategy and potential risks. The company’s investment portfolio can consist of debt that the government owes to others or portfolio investments by private investors in different countries. Hence, investment activities, including transfers among investment categories, require adequate disclosure to ensure transparency and facilitate informed decision-making by investors.