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The FASB requires for-profit entities to classify their investments as trading, available-for-sale, or held-to-maturity. However, it does not require not-for-profit entities to do the same.

The FASB requires for-profit entities to classify their investments as trading, available-for-sale, or held-to-maturity. However, it does not require not-for-profit entities to do the same. What might be the reasoning for this difference in require- ments? Which approach is more beneficial to the readers of the financial statements of a not-for-profit organization? Why?

can someone help explain please.

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