Q.9RQ
Question
What adjustment must be made at the end of the period for trading debt investments and available-for-sale debt investments?
Step-by-Step Solution
Verified Answer
Answer
Adjustments for fair value are made at the year-end.
1Step 1: Definition of Trading Debt Investment
Debt trading investment refers to the debt securities purchased by the investor for generating gain over a concise period or less than one year, i.e., within a week, days and months.
2Step 2: Adjustments to Trading Debt Investment and Available for Sale Debt Investment
The business entity made adjustments to report the trading debt investment and available for sale debt investment on their fair market value.
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