FASB ASC 320 requires companies to assign their portfolio of investment securities into 1. Trading securities 2.
Question:
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. Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... 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...
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Related Book For
Financial Accounting Theory and Analysis Text and Cases
ISBN: 978-1118582794
11th edition
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack Cathey
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