Available-for-sale securities are adjusted on balance sheets to reflect fair market values. Changes impact stockholders’ equity via Accumulated Other Comprehensive Income or Loss. Monitoring ...

However, all other investments qualify as available-for-sale securities. Why fair value is important Companies can elect to measure available-for-sale securities at fair value for accounting purposes.

Thanks -- and Fool on! The article How to Calculate Fair Value Adjustments to Stockholders' Equity With Available-for-Sale Securities originally appeared on Fool.com.