An advantage of using the fair value through other comprehensive income is that
A) the effect on other comprehensive income is reported in the income statement.
B) unrealized gains and losses are not used to evaluate management.
C) unrealized losses must be reported on the income statement, but unrealized gains are reported in other comprehensive income.
D) unrealized gains must be reported on the income statement, but unrealized losses are reported in other comprehensive income.

Question

Quizplus · Accepted Answer

Unrealized gains and losses under fair value through other comprehensive income are reported in other comprehensive income, not affecting the income statement, thus not used to evaluate management's performance directly.

An Advantage of Using the Fair Value Through Other Comprehensive