Impairment of Debt Investments Flashcards
Under what conditions is a decline in fair value of a debt investment recognized as a CECL credit loss expense in earnings?
Why are changes in the fair value of trading securities, certain equity investments, and those under the fair value option immediately recognized in income, unlike some other debt investments?
Describe the accounting treatment for a likely credit loss on a Held to maturity (HTM) investment. How does this treatment relate to the accounting for bad debts?
How are declines in the value of HTM investments typically handled in the absence of possible impairments? Where are these unrealized losses reported?
What is the intial step in determining if an Available for Sale (AFS) investment is imaired, and what condition triggers the subsequent events
