FASB ASC 320 (generally effective until 2018) requires companies to assign their portfolio of investment securities into

Question:

FASB ASC 320 (generally effective until 2018) requires companies to assign their of investment securities into
1. Trading securities
2. Securities available for sale
3. Held‐to‐maturity securities
Required:
a. Define each of these categories of securities, and discuss the accounting treatment for each category.
b. Discuss how companies are required to assign each category of securities into its current and noncurrent portions.
c. Some individuals maintain that the only proper accounting treatment for all marketable securities is current value. Others maintain that this treatment might allow companies to "manage earnings." Discuss the arguments for each position.
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...