Writing Assignment - Investments - ACG 3141 Writing...

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ACG 3141 - Writing Assignment – Investments B&L, Inc., located at 3200 College Avenue, Davie FL 33314, is a publicly traded firm that offers various business services. In 2015 it started offering financial services. As of December 31, 2015, B&L’s fiscal year-end, it held three investments totaling $70 million, an amount it considers material. Details regarding the breakdown of these investments are listed below. B&L is your clientand Warren Gordon is the President of B&L. You are a newly hired staff member of FAU, Inc., an accounting firm located at 777 Glades Road, Boca Raton, FL 33431. Because Warren is unfamiliar with the proper accounting treatment regarding investments in debt and equity securities according to United States Generally Accepted Accounting Principles (US GAAP), he has hired FAU, Inc. to explain the accounting treatments specified by US GAAP. Your firm has delegated to you the task of determining the treatment of investments, and has asked that you prepare a four (4) page typed memo (not handwritten, 1.5 spacing -- not double spaced), including a works cited page (the 4thpage of your memo should be designated as the works cited page; use MLA Formatfor your works cited page) to the client explaining 1.The standards that govern US GAAP treatment of investments, comprehensive income, and other comprehensive income.2.How to classify the investments held at year-end, assuming B&L lacks significant influence.3.How and where unrealized holding gains / losses are reported.

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