2016年美国CPA模拟试题：Financial（5）

At the beginning of Year 2, a company invested $40,000 in a marketable equity security. At that time the security was appropriately classified as an available-for-sale security. At the end of Year 2, the security had a fair value of $28,500. The change in fair value is deemed temporary. How should this change in fair value be reported in the financial statements?

a. As a realized loss of $11,500 as part of net income.

b. As an unrealized loss of $11,500 as part of net income.

c. As a realized loss of $11,500 as part of other comprehensive income.

d. As an unrealized loss of $11,500 as part of other comprehensive income.

答案：D

Explanation

Choice “d” is correct. Unrealized gains and losses on available-for-sale (AFS) securities are booked in other comprehensive income (OCI). Changes in the fair value of the securities will continue to go to OCI until the security is sold, at which point the balance in OCI will be removed and a realized gain or loss will be booked on the income statement. Because the security has not been sold, the change in fair value from $40,000 to $28,500 represents an unrealized loss of $11,500, which goes straight to OCI.

Choice “a” is incorrect. This choice would only be correct if the security was actually sold for $28,500. Changes in fair value for AFS securities represent unrealized gains or losses which go to OCI.

Choice “c” is incorrect. The loss of $11,500 will go into OCI, but it will be unrealized rather than realized.

Choice “b” is incorrect. Unrealized losses on AFS securities go into OCI rather than onto the income statement.