what-is-the-key-difference-in-accounting-treatment-between-unrealized-and-realiz

Question

What is the key difference in accounting treatment between unrealized and realized gains or losses for AFS securities?

Accepted Answer

Unrealized gains or losses affect other comprehensive income, while realized gains or losses affect net income.

Answer

Unrealized gains or losses are reported as liabilities, while realized gains or losses are reported as assets.

Answer

Unrealized gains or losses affect net income, while realized gains or losses affect other comprehensive income.

Answer

Both unrealized and realized gains or losses affect retained earnings.