What does “includes $A and $B at fair value” mean?

Question

On a balance sheet, what does “includes $A and $B at fair value” mean?

For example in a balance sheet:

Investments (Includes $A and $B at fair value, and $C and $D pledged as collateral): $E

I know what fair value is, but why are there two dollar amounts listed in the parenthesis? And sometimes the sum of $A and $B is greater than $E as well.

In: 1

Answer 1

As a CPA, I’d have to see the actual balance sheet.

But sometimes there are investments of varying types held at different accounting methods included in the same line item on a general balance sheet. Look in the notes to the financial statements. Some can be held at fair value or whatever the accounting rules would determine “book value” to be so its just noting that some $ amount in that line item are held at fair value and you can presume the delta is held at book value under the applicable accounting rules.

The A vs B and C vs D is to differentiate the years listed assuming its a comparative BS. I.e. A and C are 2022 and B and D are 2021.

Also, pretty sure under both US GAAP and IFRS you have to note on the face of the balance sheet if any portion of a listed asset is pledged as collateral.