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What is the difference in accounting treatment of unrealized gains and losses across these three categories of investments
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What is the difference in accounting treatment of unrealized gains and losses across these three categories of investments

User InBetween
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Answer:

Unrealized gains and losses treatment:

Available for sale - recorded in OCI

Held till maturity - not recognized in financial statements until maturity

Held for Trading - Fair value through profit and loss

Step-by-step explanation:

There are three categories of financial instruments. Available for Sale AFS, Held for trading HFT and Held till maturity HTM. Financial instruments are classified in these categories and then treatments is according to their classification. IAS 39 and IFRS 9 have provided complete guidelines for the treatment of the financial securities.

User Aviad Ben Dov
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