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

Replenishing the Petty Cash Fund Debit every expense account, supplies, or drawing as needed. Credit to Cash. Petty Cash is only debited when fund is established or increased.

PRICE FOR A 3-6 PAGE PAPER IN APA FORMAT

On June 1st, Green Pea, Inc. purchased $1,200 worth of supplies on account. How does this transaction affect Green Pea's accounts? a. Increase supplies and accounts payable by $

Accounting supposes that the business as an accounting entity will continue to operate for a long time in the future, unless there is superior evidence to the contrary. The enterpr

The Olympic Company has an accounts receivable balance at December 31, 2010 of $159,548.00.  The existing balance in the Allowance for Uncollectible Accounts was a credit of $2,563

The formula for computing additional paid-in capital in excess of par is shares of stock times Saturday

We are here left along with statement (d) that defines an accountant as a professional and emphasize his pre-occupation within management of information for internal utilization as

WHAT DO YOU MEAN BY ACCRUAL CONCEPT

Limitations of Ratio Analysis :  In spite of the a variety of uses of ratio analysis, it go through from certain limitations, some of which are as under; 1.    Limited use