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Unformatted text preview: 13-6 Unrealized loss in stockholders' equity section Note that the presentation of the loss is similar to the presentation of the cost of treasury stock in the stockholders' equity section. (An unrealized gain would be added in this section of the balance sheet.) Reporting the unrealized gain or loss in the stockholders' equity section serves two important purposes: (1) It reduces the volatility of net income due to fluctuations in fair value, and (2) it informs the financial statement user of the gain or loss that would occur if the company sold the securities at fair value....
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- Spring '11
- unrealized loss