What are the different methods that can be used to account for equity securities and when should they be used? Know the accounting for each method. What are the different methods that can be used to account for debt securities and when should they be used? Know the accounting for each method. What is the accounting for impairments related to receivables and loans? What items are eligible to be accounted for using the fair value option? When must a company elect to use the fair value option? Do all assets in a particular category have to use the fair value option if it is elected for one item in the category? How do we account for intangible assets? Know the difference in accounting for limited-life versus indefinite-life assets and the types of intangible assets in each category. What are the different ways that have been used to account for goodwill? What method do we currently use and why was it chosen? Use your accounting theories and SFACs to consider which method of accounting for goodwill best captures its underlying economic reality and which method managers may prefer. What is the accounting for research and development? 

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Accounting for Equity and Debt Securities There are three main methods for accounting for both equity and debt securities depending on the intent and ... View the full answer