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
Wings Inc., a software development firm, has stock outstanding as follows: 25,000 shares of cumulative 1%, preferred stock of $40 par, and 50,000 shares of $120 par common. Durin

__________ accounts show the amount of money owed to the firm by customers. A. Supply B. Prepaid C. Receivables D. Payables

Q. What is invoice? An invoice is a document prepared by the seller of merchandise as well as sent to the buyer. The invoice contains the details of a sale such like the number

In the process of giving information from a business to a prospective buyer, an accountant is requesting a Reconsolidation for last December. What is that?

what are the activities in the business organization

Cargin Company uses the FIFO method in its process costing system. The Assembly Department started the month with 15,000 units in its beginning work in process inventory that wer

Why is the cash basis of accounting not used when preparing financial statements?

Q. Example of Adjustments for accrued items? For instance assume Micro Train Company has some money in a savings account. On 2010 December 31 the cash on deposit has earned one

Q. Example of Income statement? Income statement demonstrates the income statement Lyons prepared. The focal point in this income statement is on determining the cost of goods

on 10/15 the academy agreed to teach a four month class (beginning immediately) to an individual for $2,200 tuition per month payable at the end of the class. the class started on