Question: When an investment is acquired to be held for an
When an investment is acquired to be held for an unspecified period of time as opposed to being held to maturity, it is reported at the fair value of the investment securities on the reporting date. Why?
Answer to relevant QuestionsReporting an investment at its fair value means adjusting its carrying amount for changes in fair value after its acquisition (or since the last reporting date if it was held at that time). Such changes are called unrealized ...Do U.S. GAAP and IFRS differ in the amount of flexibility that companies have in electing the fair value option? Explain.How does IFRS differ from U.S. GAAP with respect to using the equity method?Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2011, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate ...Refer to the situation described in BE 12-9, but assume that Park Industries buys 50% of Wallis's common shares. Also assume that Park reports under International Financial Reporting Standards, and has elected the ...
Post your question