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Basic Question 6 of 11
Fair value is used as the basis for valuation of a firm's investment securities when ______
B. the market value is less than the cost for each equity security in the portfolio.
C. the investment security is not classified as held-to-maturity.
A. management's intention is to dispose of the securities within one year.
B. the market value is less than the cost for each equity security in the portfolio.
C. the investment security is not classified as held-to-maturity.
User Contributed Comments 5
| User | Comment |
|---|---|
| danlan2 | For held-to-maturity, the amortized cost is used. |
| ostrich | An interesting question...to say the least..indeed!! |
| MFTIOA | would A be considered available-for-sale securities? I guess they can still be held-to-maturity securities that management intend to sell? |
| charliedba | A is not precisely accurate: these securities can still be held-to-maturity ones thus amortized cost should be used. |
| dybacis | What about Unlisted instruments that are not classified as held-to-maturity? |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the financial reporting and disclosures related to financial instruments
CFA® 2024 Level I Curriculum, Volume 2, Module 3.