- Trading Securities To be sold in a short period of time.
- Reported at fair market value. Unrealized gains and losses to net income (discount or premium not amortized).
- Holding gain or loss is the net change in fair market value from one period to another exclusive of dividend or interest revenue recognized but not received.
- **New** Valuation Allowance (also known as Securities Fair Value Adjustment) can have a debit balance (gain) as well as a credit balance (loss).
- FASB believes that fair market value information is very relevant to current economic decisions when securities are actively traded.