In: Accounting
Based on your chapter reading, key point lecture notes,
and study ppt slides, please state that the major difference in the
accounting for a portfolio of "trading securities" vs.
"available-for-sale securities" vs. "held-to-maturity"?
In other words, what are the main differences in accounting
treatment among the three categorized investment holdings, trading
securities, available-for-sale securities, and
held-to-maturity (the accounting treatment rules,
rationale behind, or underlying principle? (Do these rationales
make sense to you?)