Investments in common stocks potentially affect each of the various financial statements as well as the disclosure

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Investments in common stocks potentially affect each of the various financial statements as well as the disclosure notes that accompany those statements.

Required:
1. Locate a recent annual report of a public company that includes a footnote that describes an investment in securities available-for-sale. You can use EDGAR at www.sec.gov.
2. Under what caption are the investments reported in the comparative balance sheets? Are they reported as current or noncurrent assets?
3. Are realized gains or losses reported in the comparative income statements?
4. Are unrealized gains or losses reported in the comparative statements and shareholders' equity?
5. Are unrealized gains or losses identifiable in the comparative balance sheets? If so, under what caption? Why are unrealized gains or losses reported here rather than in the income statements?
6. Are cash flow effects of these investments reflected in the company's comparative statements of cash flows? If so, what information is provided by this disclosure?
7. Does the footnote provide information not available in the financial statements?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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