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
Q. What is current ratio in terms of accounting? The current ratio specifies the short-term debt-paying ability of a company. To find the current ratio we divide current assets

All relevant information and explanations about a business have been included in its financial reports


Assignment on Generally Accepted Accounting Principles

Why it is important for independent auditor to be a member of a professional body?

When common stock has a par value of $2 and a market value of $15: 1.) the liability of the stockholders is $13 per share 2.) there will be additional paid-in capital of $1

An asset or account of borrower, which has been classified by a bank or financial institution as sub-standard, doubtful or loss assets as per the guidelines issued by RBI. An

Q. Advantages of Weighted-average? Weighted-average: Advantages because of the averaging process the effects of year-end buying or not buying is lessened. Drawback Manipulation

Question: You have decided to borrow $20,000 so that you can consolidate the loans you currently have with other lenders. You have agreed to repay the loan in 8 equal semi-annu

Workers compensation insurance Workers compensation insurance provides protection for employees who suffer a job-related illness or injury. Entire cost is generally paid by t