Anything realized goes to income statement, be the realized gain/loss on sale of trading securities or realized gain/loss on sale of available for sale securities.

ysjd.patel wrote: thanx divya...:) for trading securities amt of gain or loss is the difference btw sales proceeds and cost...am i right?

No, for trading securities, the amt of gain or loss is the difference b/w sales proceeds and the adjusted cost.

Example, Trading securities

Original cost Jan 1, 2008  $100

FV Dec 31, 2008 $80

Unrealized loss $20 goes in Income Statement

Security sold in 2009 for $90

Realized gain $10 goes to IS. remember, original cost had been brought down to FV $80 and $ 20 had alreday been charged to IS. So, we compare the adjusted cost vs sale proceeds for trading securities.

Held - to - maturity costs are reported at their amortized cost. The unamortized discount/premium affects the interest expense/revenue. It doesn't go the income statement directly.