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Chapter 9 Debt Inves - I II III IV V VI PrivateentityGAAP Impairment Pre2011GAAP(a)Financialasset(FA 1 2 3 i ii Cash Contractualright Toreceive

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I. Basic concepts and definitions II. Accounting for debt investments III. Accounting for equity investments IV. Private entity GAAP V. Impairment VI. Pre-2011 GAAP
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(a) Financial asset (FA) 1. Cash 2. Equity instrument of another entity or 3. Contractual right i. To receive cash or FA or ii. To exchange FA or FL under potentially  favourable conditions
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(b) Fair Market Value (FMV) 1. Exit price that would be received/paid to sell  asset/transfer liability at measurement date in an  orderly fashion 2. Market based (more objective), not entity specific 3. At acquisition HC=FMV If no active market, use valuation technique (eg. Option  pricing model or discounted cash flow)
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(c) Holding Gains/Losses (HG/HL) Gains/losses due to changes in value of assets Over life of asset: FMV-cost For the period: FMV-carrying value Realized When asset is sold (exchange transaction) Unrealized If asset is still held
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(d) Other Comprehensive Income (OCI) Gains/losses during the period that accounting  standards require be recognized in  comprehensive income, but not reported in  current year’s net income Includes some changes in UHG and UHL
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(e) Accumulated Other Comprehensive Income  (AOCI) Balance of all past charges and credits to OCI  recognized on B/S but which are not included in  R/E
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This note was uploaded on 12/16/2011 for the course ACTG 3P33 taught by Professor N-a during the Fall '08 term at Brock University, Canada.

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Chapter 9 Debt Inves - I II III IV V VI PrivateentityGAAP Impairment Pre2011GAAP(a)Financialasset(FA 1 2 3 i ii Cash Contractualright Toreceive

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