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Interpreting footnote discolsures for investments CNA Corporation provides the ronowng footnote to its 20' S report The company classifies fixed maturity securities as either o'
Interpreting footnote discolsures for investments
CNA Corporation provides the ronowng footnote to its 20' S report The company classifies fixed maturity securities as either o' trad ng and as such. they are came d at va'ue Changes va'ue o f trading securities are reponed v.'thn Net investment income on the Consolidated Statements O! Operations, Changes in fair votue 'elated to sea are reported as a torvonent o' Other cornprehensive Inco.rne onmyrg table prmides a summary qre6 maturi\y and Gross Estimated Amy-tind Unrealized Cost Gains Losses December 31, 2018 (S minions) Corporate and o!her bonds As sei bocked mortgage-Odked commercia rtg backea Other Totai asselbacked preferre- Total fired ma'unty malunry securneS Too 61.ed maturTy Securooes ent Fair Va'ue 9673) 8 086 433 5921 At amount does CNA report its 'five-stment in mar*et.atle deb' secant'S on its 5heet7 answer. 'denofy the vabe. cost and and 'osses (S m"'eonsJ on DaLance sheet s Lhreahzed eau zed tosses (b) Compute the net unrealized gan less on rnrt'cio Use a neptrve sag" with your answer to Lndkate an unreabzed 'oss m "bon do CNAS balance sheet and income statement renea unrealized gain or Securities are reported at historical COST Gams and are retag.i_zed Loon Sale O' the securities Secuno:es are reported a' value Unrealized gams and tosses are rmogrV2ed currentiy in Securities are repcned at far value Unrealized gams and losses on AVS secumieS are recorded accumulated ottW comprehenswe income. Secunti% reported at value unreaLred losses reccvuzed net Nome Unrealized gans are de'erree and retognued upon safe Of the securities Hrw do CVS balance sheet and statement gams and losses realized from the sale o' avadabie-'or-s-a:e securities? Gains and lasses realued the "je Ot secunttes are recognized in current income The company reords an ucot_mtng a $ustment in ADO account renect the elimination Of recorded gams and NO entry 'S required as tm turrentb' reported at value and unrealized gains and losses are reflected Ln current mome The value changes the income Statement Guns and realized the o.' are reave ted in current income. The rords an m cash ana equWents to the ehrmnat_iM o' unrealized and rea!aed 'he Y-me Ot are
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