1 Discuss why corpo securities. reasons: (a) They h investments as a sig have strategic goal competitor or movi 2 Explain the accounting for debt investments. Companies record inv they purchase bonds, receive or accrue interest, and sell the bonds. Th sale of bonds in the “Other revenues and gains” or “Other expenses an statement. 3 Explain the accounting for stock investments. Companies record in they purchase the stock, receive dividends, and sell the stock. When o cost method is used. When ownership is between 20% and 50%, the e When ownership is more than 50%, companies prepare consolidated f 4 Describe the use of consolidated financial statements. common stock of another company, it usually prepares consolidated f statements indicate the magnitude and scope of operations of the com 5 Indicate how debt and stock investments are reported in financial and stock securities are classified as trading, available-for-sale, or hel valuation and reporting purposes. Trading securities are reported as cu
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This note was uploaded on 10/21/2011 for the course ACCT 272 taught by Professor Mensah during the Fall '08 term at Rutgers.