Explain how the financial reporting of gains and losses on assets differs from the financial reporting of unrealized gains and losses on martketable securities. Explain how the financial reporting of gains and losses on assets differs from the financial reporting of unrealized gains and losses on martketable securities. Solution Particulars Gains and Losses on Assets unrealized gains and losses on martketable securities Actual or Not Actual It is actual or real in nature. It is differrence between the values of securities Income Tax It is taxable / deductible under income tax It is not considered under income tax Cash flow There is cash inflow There is no any cash flow Realisation It is realised gain or loss It may be realised or not. It is unrealised.