Question

In which investment category are fair values and subsequent growth of an investee not relevant for reporting? Securities reported under the equity method. Securities available for sale. Held-to-maturity securities. Trading securities.

Answer 1

Answer:

Held-to-maturity securities.

Explanation:

Held to maturity securities are reported at the amortized cost. These securities are held until the maturity date to receive income associated with these securities rather than earning return from the trading of securities.

Other securities are reported on fair value and they consider the subsequent growth of an investee.