Final answer:
To calculate the loss to include in Hobson's income statement for securities, it depends on the category of the securities and whether any losses are realized or determined to be other-than-temporary. Without specific information on the type of securities or their value change, an exact figure cannot be provided.
Step-by-step explanation:
To determine the amount of loss that Hobson should include in its income statement for the year ended December 31, 2013, related to securities, we need to understand how securities are classified and reported in financial statements according to accounting standards. There are typically three categories of securities: trading, available-for-sale, and held-to-maturity.
Trading securities are bought and held principally for the purpose of selling them in the near term. Unrealized gains and losses on trading securities go through the income statement.
Available-for-sale securities (AFS) are those intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates, or equity prices. For AFS securities, unrealized gains and losses are not reported in the income statement but are shown as other comprehensive income until they are sold or when a decline in value is determined to be other-than-temporary, at which time the loss is reclassified from other comprehensive income to the income statement.
Held-to-maturity securities are bought with the intention to be held to maturity. For these securities, gains and losses are generally recognized in the income statement when they are realized through sale or when there is an other-than-temporary impairment.
Without more specific information about the type of securities Hobson holds and any changes in their value, we cannot ascertain the exact figure. However, if Hobson has trading securities that have declined in value over the year or if it has AFS securities that have an other-than-temporary decline in value, it would have to report this as a loss through its income statement. If Hobson has held-to-maturity securities, it would recognize a loss only if sold for less than the amortized cost basis or if there is an other-than-temporary impairment. Therefore, to answer the question accurately, the category of the securities and the nature of any value changes must be disclosed.