1. How does electing the Fair Value Option under US GAAP changethe reporting for investments classified as Trading Securities?Balance Sheet effect / Income Statement effect
No change/ No change
Change to fair value / Change to recognized unrealized gain& loss in OCI
Change to fair value / Change to recognized unrealized gain& loss in the Income Statement
No change / Change to recognized realized gain & loss in theIncome Statement
None of the above describes the change due to electing the FairValue Option
2. A company records an unrealized loss on short-term debtsecurities classified as “trading.” Unrealized losses are not taxdeductible but realized losses are.
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