[Anonymous]

Hey guys, I’m studying to resit for FAR for the third time. Quick question, I was looking at securities and where the unrealized gains and losses are reported and I understand that trading goes to earnings and AFS goes into OCI. But was there something that showed an unrealized gain on OCI and loss in earnings? And if there was a loss after a gain it would reduce the gain on OCI. and then if need be show a loss in earnings. I remember reading it but can’t remember for the life of me and can’t find it in the book. It’s driving me crazy haha. Any help would be appreciated. Thanks!

[momto5]

Are you maybe getting this confused with intangible assets under IFRS – revaluation model? If you have Becker 2012, see page F2-15.

FAR - 92 (4/27/12)
AUD - 96 (7/17/12)
BEC - 92 (8/30/12)
REG - 91 (11/12/12)

[goodluck2everyone]

youre probably getting it confused with the concept of being conservative

contingent gains are not reported but losses are recognized

I dont think there is such a thing as unrealized gain going to OCI but unrealized losses being recognized and going to earnings

BEC- 80
REG- 68, 71, July
AUD- 61 , 84
FAR- -- 75 🙂

[Anonymous]

Momto5 that's exactly it thank you so much! Goodluck thank you also for taking the time to reach out its much appreciated!

[Anonymous]

Unrealized on gain/losses on available for sale are reported in OCI, while realized losses on available for sale are reported in earnings.

Unrealized/realized gain/losses on trading are reported in earnings.

Agree with goodluck regarding contingents…contingents gains aren't reported, but losses are.

[Anonymous]

Thanks 628. So for clarification:

Trading: everything goes to earnings (realized and unrealized)

AFS: Unrealized gain/loss goes to OCI. Realized gain goes to OCI and realized loss goes to earnings.

Revaluation gain on an intangible: OCI

Revaluation loss on an intangible: Earnings

If there is a subsequent gain or loss it must reverse out the prior gain/loss first before being reported.

[Author]

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