Available-for-sale securities are recorded at cost, which equals fair value on the acquisition date.
Select one:
True
False
Available for sale securities are reported at fair value as on the date of balance sheet. Any unrealized gain or losses are not recognised in the income statement but are reported in other comprehensive income which is a part of shareholders equity.
Therefore it won't be correct to say that available-for-sale securities are recorded cost which equals to fair value on acquisition day because any changes in the fair value of the securities are to be recorded as on the date of balance sheet.
Therefore the correct option is False
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