[Anonymous]

I’m using Roger and watching his updated videos for the 2018 changes. He keeps saying unrealized gains and losses for afs securities goes to the balance sheet and literally keeps pointing to the income statement. And so now I’m lost.
Can anyone shed some light on this?

[Recked]

I think….
AFS unrealized goes to other comprehensive income OCI on the balance sheet, as a separate section of shareholder equity.
Are you sure he's pointing to the income statement, and not the OCI?

Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)

FAR-93 11/9/17 (10wks, 250 hrs, Roger 1800+ MCQs, Gleim TB 600+MCQs, SIMs)
AUD-88 12/7/17 (3 wks, 85 hrs, Roger 1000 MCQs no SIMs hail mary)
REG-96 1/18/18 (6 wks, 110 hrs, 1400 MCQs, no SIMs)
BEC-91 2/16/18 (4wks, 90 hrs, 1240 MCQs)

[Anonymous]

Recked is correct. It goes in OCI.

[Anonymous]

Yes. I'm absolutely positive he keeps pointing to the income statement on the board. But it isn't the first time he has pointed to something wrong. This isn't one of those record to the income statement and upon close it flows to the b.s. is it?

[Anonymous]

Wait. I figured it out. The gains and losses go to the balance sheet. He was showing me a sale. It makes sense now. 🙂

[Anonymous]

If I recall it right, the 2018 changes include equity securities which are identified as mere equity securities now and no longer classified into TS, AFS, and HTM. In contrast to debt securities, they’re classified the same. All the unrealized gains and realized gains for equity securities no longer park at BS as OCI, but they go directly to IS.

[Anonymous]

I just watched all of the updated videos for debt securities and he is breaking them down with afs, trading, HTM

I'm confused again. Ugh.

[Anonymous]

As mentioned above, Equity securities are no longer classified as AFS, HFM, and Trading. They are now valued at Fair Value. ALL gains and losses for equity securities go to the Income Statement and recognized in income from continuing operations.

Debt securities are still classified further into Trading, AFS, and HFM. Unrealized gains and losses for AFS go to OCI in SHE section of the Balance Sheet.

ALL REALIZED Gains and Losses go to the Income statement for all classes.

[Anonymous]

@Audarah ,

To be a little more clear, if you buy a debt investment and don't sell it by the end of the year then this is how it works:

HTM are recorded initially and then reported at amortized cost on the B/S

TS are recorded at amortized cost and then remeasured at FV on the B/S at the end of the period. Any unrealized gains and losses are reported on the income statement as part of net income. (which obviously then goes into R/E)

AFS are recorded at amortized cost and remeasured at FV on the B/S, however any unrealized gains and losses go into OCI on the statement of comprehensive income, which is then reported in accumulated other comprehensive income (AOCI) on the B/S which is a separate component of shareholder's equity. (not part of R/E)

[Anonymous]

Great. I somehow think I am studying the old stuff, not the new stuff. Even though I paid for the upgrade and new materials. He isn't saying measured at fair value. Grrr.
I'm doing ninja instead.

[Anonymous]

@benj2017
ohhhhhhhh! I get it now! Ty. I was driving myself nuts

[Author]

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