1 / 1

Type of Investment?

Type of Investment?. Debt Securities. Equity Securities. Consolidate. Use amortized cost method. Does management have positive intent and ability to hold to maturity?. Yes. Greater than 50% ownership of voting stock?. No. No. Yes. Does investor have significant influence

jaegar
Download Presentation

Type of Investment?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Type of Investment? Debt Securities Equity Securities Consolidate Use amortized cost method Does management have positive intent and ability to hold to maturity? Yes Greater than 50% ownership of voting stock? No No Yes Does investor have significant influence over investee? Classify as held-to- maturity Use equity method Yes No Does security have readily determinable fair value? Use cost method Yes No Use fair value method Include unrealized holding gains and losses as a part of earnings of the period Classify as trading security (current asset) Measure and report at fair value as of balance sheet date Yes Is the security held for current resale? Include unrealized holding gains and losses as a separate component of stockholders’ equity Classify as security available for sale (current or noncurrent) Measure and report at fair value as of balance sheet date No

More Related