Appendix D Notes

Appendix D Notes - Appendix D Class Notes Reporting and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Introduction: In this chapter we focus on why companies invest in other companies and how to account for certain investments. There are four accounting issues: 1. How to account for initial purchase. 2. How to account for receipt of dividends. 3. How to account for subsequent change in the value of the security. 4. How to account for security if it is sold. Why Companies Invest in Other Companies Several Reasons: To take control. (we don’t cover) Exert significance influence. (we don’t cover) Passively invest in securities available of sale. Profit from buying and selling (trading securities). Appendix D Class Notes Reporting and Interpreting Investments In Other Corporations Compiled by: Janice H. Fergusson, CPA Certain Materials used with permission of The McGraw-Hill Companies, Inc. Our Focus
Background image of page 1

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

View Full DocumentRight Arrow Icon
ACCT 225 – Fall 2008 Page 2 of 4 Chapter 13 Accounting for Securities Available for Sale (SAS) (pp. D6-D9) Investments in securities available for sale are accounted for at
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/06/2011 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

Page1 / 4

Appendix D Notes - Appendix D Class Notes Reporting and...

This preview shows document pages 1 - 3. Sign up to view the full document.

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