For trading equity and debt recognized at fair value through income statement
Study material states that these securities are held for small term in order to make profits (understood)
i get it there will be realized gains and losses when we actually sell this security which will be recorded in the income statement - loss will reduce net income and gain will increase it.
My question is:
Why do we need to record unrealized gains or losses if we need to sell this security in a short time, maybe before even the financial statements are made?
If we need to record unrealized gains and losses then why not through OCI?
But in the first place, why do we need to record it, when we will sell it in the short time period of holding to make profit?
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Nupur Mahajan
nupur1188@...Hartford CT United States
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