A common example of an unrealized gain is the gain in the market value of an investment in the stock of another corporation that is held as an available-for-sale security.
The unrealized holding gain is reported on the balance sheet by 1) increasing the asset available-for-sale securities, and 2) increasing the stockholders' equity component accumulated other comprehensive income. Note that the holding gains on available-for-sale securities are not reported on the income statement.
To learn more, see the Related Topics listed below:
After working as an accountant, consultant, and university accounting instructor for more
than 25 years, Harold Averkamp formed AccountingCoach.com in 2003. His goal was to
share his knowledge and passion for teaching accounting with people throughout the
world at a very low cost. Read More...