Video: Unrealized Gains and Losses

In this lesson, Nick Palazzolo, CPA, breaks down the treatment of unrealized gains and losses on available for sale debt securities, a crucial concept that often pops up in the Financial instruments section. Emphasizing the importance of proper classification of debt securities, he delves into the three types that are critical for accurate financial reporting: trading, held to maturity, and available for sale. Nick clarifies where these securities are reported—reminding participants that while it's vital to understand the conceptual framework, committing certain details to memory is just as valuable for grasping the bigger picture and ensures a robust understanding of how unrealized gains and losses fit into the overall financial statements.