An important part of GAAP for marketable securities is the distinction between investments categorized as trading, available

Question:

An important part of for marketable securities is the distinction between investments categorized as trading, available for sale, or held to maturity.

Required
1. What types of securities are covered by this ?
2. Explain how the distinction between the three categories is made.
3. Discuss the distinction between realized and holding gains and losses on investments in debt and equity securities.
4. Explain how a company discloses realized and holding gains and losses on investments in equity securities on its financial statements.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...