"M351 Notes-Day 19 Investments in Debt Securities 02-26

"M351 Notes-Day 19 Investments in Debt Securities...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
M351 Notes, Class 19, Investment in Debt Securities, pp. 856-870 A. Debt securities (issued by other companies, or governmental entities; does not include A/R and loans receivable as those instruments do not meet the definition of securities) are to be placed in three portfolios: Hold to maturity —company has the intent and ability to hold to maturity Trading —securities to be sold in the near term; produce income or losses on short-term price differences Available for sale —securities not in the hold to maturity or trading portfolios B. Accounting and reporting requirements for debt securities: Category Valuation Unrealized Holding Gains or Losses Other Income Effects Hold-to-maturity Amortized cost Not recognized Interest when earned gains and losses from sale Trading Fair value Recognized in net income Interest when earned; gains and losses from sale Available-for-sale Fair value Recognized as other comprehensive income and as a separate component of stockholders’ equity Interest when
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

"M351 Notes-Day 19 Investments in Debt Securities...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online