Statement 115 requires that changes in the fair value of available-for-sale (AFS) securities be reported in a separate component of stockholders ' equity until realized. Statement 52 generally requires that transaction gains and losses on foreign-currencydenominated monetary assets and liabilities be reported in earnings. In the case of foreign-currency-denominated AFS debt securities, the change in fair value expressed in an entity's functional currency is the total of (1) the change in market price of the security as expressed in the local currency due to factors such as changes in interest rates and credit risk and (2) the change in the exchange rate between the local currency and the entity's functional currency. This Issue only addresses the accounting for foreigncurrency-denominated AFS debt securities. Copyright © 2006, Financial Accounting Standards Board Not for redistributio
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