Realized gains and losses on investment disposals are recognized in net income for all investment instruments EXCEPT those classified as
A) FV-NI.
B) FV-OCI with recycling.
C) cost/amortized cost.
D) FV-OCI without recycling.

Question

Quizplus · Accepted Answer

Realized gains and losses on investments classified as FV-OCI (Fair Value through Other Comprehensive Income) without recycling are not recognized in net income. Instead, they are recognized in other comprehensive income and accumulated in equity, bypassing the income statement.

Realized Gains and Losses on Investment Disposals Are Recognized in Net