available for sale securities question, interest, regarding, available, understand

towardsutopia21

I am a little confused regarding the impact of avaliable for sale securities on the income statement and shareholders equity..

As I understand any unrelaized gains/loss for the avaliable for sale securities is recorded as a part of comprehensive income (shareholders equity) and DOES NOT affect the income statement... However the dividends or interest gained from these are reported on the income statement... Is this correct?

I came across a question in one of the mock exams which asked which of the following is a part of comprehensive income but not income statement
a) Unrealized gains and losses on available for sale
b) Unrealized gains and losses on foreign exchange
c) something i dun remember

The answer was given as B... Isnt this question a lil ambiguoes as even A can be the case if we consider the reporting like I have stated above for the available for sale securities?


Sorry about the long convoluted question .. Can someone clarify this?