Why does a company maintain separate investment portfolios

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The IASB issued accounting guidance to clarify accounting methods and procedures with respect to debt and equity investment. An important part of the statement concerns the distinction between held-for-collection and selling debt investments, trading debt and equity investments, and non-trading equity investments.

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Question a. Why does a company maintain separate investment portfolios for these different types of investments?

Question b. What factors should be considered in determining whether investments should be classified as held-for-collection, held- for-collection selling, trading, or non-trading? How do these factors affect the accounting treatment for unrealized losses?

Reference no: EM132840951

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