Statements related to impairments of investments

Reference no: EM13149941

Of the following statements related to impairments of investments, which is correct?

a) The amount of any write-down in value is accounted for as a recognized loss.

b) Subsequent increases/decreases in the fair value of impaired available-for-sale securities are not included as other comprehensive income.

c) A bankruptcy being experienced by an investee is an example of a temporary loss in value.

d) If the decline in value is considered temporary, the cost of the individual security is not written down to a new cost basis.

Reference no: EM13149941

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