M4 Flashcards
1
Q
3 classifications of debt securities
A
Trading
Available for sale
Held to maturity
2
Q
Reporting debt securities
A
Trading - fair value
AFSale - fair value
Held to Maturity - amortized amt, unless not fully collectible then present value expected to be collected
Realized gains/losses on the IS for all!
3
Q
Equity securities
A
Common and preferred stock
Rights to acquire shares of stock
(Warrants, stock rights, call options)
Right to dispose (put options)
4
Q
Equity securities - FVNI
A
Fair value through net income
5
Q
Equity Method is used when?
A
Accounting for investments if significant influence can be exercised by the investor over the invested - ownership of 20-50 percent
