Discuss the Definitions of Trading, Available-For-Sale and Held-To-Maturity Securities as They

Discuss the definitions of trading, available-for-sale and held-to-maturity securities as they related to investments in debt securities.
a. Trading securities. Securities held for resale
b. Securities available for sale. Securities not classified as trading securities or held‐to‐maturity securities
c. Securities held to maturity. Debt securities for which the reporting entity has both the positive intent and the ability to hold until they mature
Trading securities are reported at fair value, and all unrealized holding gains and losses are recognized in earnings. Available‐for‐sale securities are reported at fair value. However, unrealized holding gains and losses for these securities are not included in periodic net income; rather, they are reported as a component of other comprehensive income. Held‐to‐maturity securities are reported at amortized cost, whereby discounts and premiums are amortized over the remaining
lives of the securities.
All trading securities are reported as current assets on the balance sheet. Individual held-to‐maturity and available‐for‐sale securities are reported as either current assets or investments, as appropriate. The appropriate classification is to be based on the definition of current assets.