random_walker47

No Dreary; Baron's unamortized cost is 25m, market value March 31 is 28m, so you'd recognize a gain on NI as 3m. Much in the same way when we reclassify Dunbar as HFT, gain is 5m since there's 5m gain from 50m cost to 55m Q1 value. Any unrealized G/L for HFT is always reported as income. Someone please correct me if I'm wrong.


Clarification: I believe you'd be correct (1m loss) if it had been HFT from the start. But since we're reclassifying, I think you have to use cost as the basis and work G/L from there.



Edited 1 time(s). Last edit at Thursday, June 2, 2011 at 10:28AM by Shock6822.