The accounting provisions in FASB ASC Topic 320 outline two different treatments for unrealized gains and losses depending on whether the security is classified as trading or available for sale. Unrealized gains and losses for trading securities are reported on the income statement, while unrealized gains and losses for available-for-sale securities are reported as other comprehensive income and then become part of accumulated other comprehensive income in stockholders' equity.
Your assignment is to develop an argument, in writing, for including unrealized gains and losses for available-for-sale securities on the income statement. Include in your one-page paper reasons as to why the FASB might have chosen the reporting rules that it did and be able to refute the Board's reasoning.