Intermediate Accounting 12 Investments Classification of Investments Investments in available-for-sale securities are reported at their fair value on the balance sheet date The unrealized holding gains or d osses are included in other comprehensive income
Investments in available-for-sale securities are reported at their fair value on the balance sheet date. The unrealized holding gains or losses are included in other comprehensive income. Intermediate Accounting 12 Investments Classification of Investments
Intermediate Accounting 12 Investments Classification of Investments Therefore, the unrealized holding gains and losses are not included in net income for the available- for-sale securities
Therefore, the unrealized holding gains and losses are not included in net income for the availablefor-sale securities. Intermediate Accounting 12 Investments Classification of Investments
Intermediate Accounting 12 Investments Classification of Investments Investments in held-to-maturity debt securities are debt securities for which the company has the positive intent and ability to hold until they mature
Investments in held-to-maturity debt securities are debt securities for which the company has the positive intent and ability to hold until they mature. Intermediate Accounting 12 Investments Classification of Investments
Intermediate Accounting 12 Investments Classification of Investments Investments in held-to-maturi debt securities are reported at their amortized cost on the balance sheet. not their fair value
Investments in held-to-maturity debt securities are reported at their amortized cost on the balance sheet…not their fair value. Intermediate Accounting 12 Investments Classification of Investments
Accounting for Investments Reporting of Unrealized holding Method Gains and losses Investment in Equity securities 1. No significant influence a. Trading Fair value Net Income b. Available for sale Fair value Other comprehen SIve income 2. Significant influence Equity method Not recognized 3. Control Consolidation Not recognized
Accounting for Investments Reporting of Unrealized Holding Method Gains and Losses Investment in Equity Securities 1. No significant influence a. Trading Fair value Net Income b. Available for sale Fair value Other comprehensive income 2. Significant influence Equity method Not recognized 3. Control Consolidation Not recognized Intermediate Accounting 12 Investments