the specific citation for accounting , Accounting Basics

Corporations frequently invest in securities issued by other corporations. Some investments are acquired to secure a favorable business relationship with another company. On the other hand, others are intended only to earn an investment return from the dividends or interest the securities pay or from enhnaces in the market prices of the securities- the similar motivations that might cause you to invest in stocks, bonds, or other securities. This diversity in objectives means no single accounting method is adequate to report every investment. Investments in common stocks potentially affect every of the several financial statements as well as the disclosure notes that accompany those statements.

Required:

1. Obtain the relevant authoritative literature on accounting for investments in held-to-maturity securities using the FASB's Codification Research System. What is the specific citation that explains examples of circumstances under which an investment is available to be sold and thus should not be classified as held-to-maturity? List the circumstances and conditions.

2. Access the FASB's Codification Research System. Examine the specific citation for accounting for each of the following items: 1. Unrealized holding gains for trading securities should be included in earnings. 2. Under the equity method, the investor accounts for its share of the earnings or losses of the investee in the periods they are reported by the investee in its financial statements. 3. Transfers of securities among categories shall be accounted for at fair value. 4. Disclosures for available-for-sale securities should include total losses for securities that have net losses included in accumulated other comprehensive income.

Access the 10- K filing for most recent fiscal year for your company.

Required:

3. What is the amount and classification of any investment securities reported in the balance sheet? What criteria are used to examine the classifications? Are they reported as current or noncurrent assets?

4. Are unrealized gains or losses reported in the shareholders' equity section? If so, under what caption? Why are unrealized gains or losses reported here rather than in the income statements?

5. Are any investments reported by the equity method? If so, what amounts from these investments are reported in the comparative income statements? Has that income enhanced or decreased over the years reported?

6. Are any acquisitions or disposals of investments reported in the statement of cash flows?

7. Are realized gains or losses reported in the comparative income statements?

 

 

Posted Date: 3/19/2013 6:50:54 AM | Location : United States







Related Discussions:- the specific citation for accounting , Assignment Help, Ask Question on the specific citation for accounting , Get Answer, Expert's Help, the specific citation for accounting Discussions

Write discussion on the specific citation for accounting
Your posts are moderated
Related Questions
Generally Accepted Auditing Standards (GAAS) - Standards set by AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) which concern AUDITOR'S professional qualities and judgme

How to prepare the worksheet  Look carefully at worksheet in the text. Remember that it is an informal working paper used to prepare financial statements. Place transparenci

An asset's cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. 01.) True 02.) False True or Fals

How do I complete this chart

How would I plot these problems in a T-account? d. received applications from three students for a 4-week secretarial program and 2-students for a ten day keyboarding course. The s


Q. Explain about Depreciation expense? Depreciation expense is the sum of asset cost assigned as an expense to a particular period. The method of recording depreciation expense

Examine each of the items listed below to determine which items include statements that 3) would indicate that manufacturing diversity exists. Required: Label the items that inc

On January 1, 2012, Muller Co. borrowed cash from Washington Valley Bank by issuing a $100,000 face value 3-year installment note payable that carried a 7% interest rate. The note

what is meaning by parallel accounts