available-for-sale security

short-term or long-term asset that is usually marketable, though there is no clear intention to sell it. Valuation is adjusted to fair market value.

business combination

one business gaining control of another business entity or entities

comprehensive income

sum of net income (or loss) and other comprehensive income

consolidated financial statement

statement of combined reporting of a parent company and all its subsidiaries when the parent's control may exceed 50%


two or more independent businesses combining to be a business combination. Their results are reported together as a single set of financial statements.

consolidation method

method used to recognize investments when control exists or where the investor owns more than 50% of the investee's outstanding stock

cost method

method used to recognize investments in the equity of another company for which no significant influence exists and where the investor owns less than 20% of the investee's outstanding stock

debt security

bond or note held as investment


ownership that represents an investment, such as stock ownership, in the performance of another entity

equity method

method used to recognize investments in the equity of another company when ownership is between 20% and 50%

held-to-maturity (HTM) security

typically a bond or note, as these instruments may have features that may make them less liquid than others and are intended to be held to defined maturity dates


target or company whose ownership is bought by another


marketable asset owned by a company that may include bonds, notes, and stocks

trading security

stock or bond purchased with the intent of active trading or near-immediate sale, for short-term investment purposes only

unrealized gain or loss

gain or loss arising from the change in value of an investment that is still held by the investor