Site MapHelpFeedbackInvestments
Investments


In this chapter, you will learn that investments that companies make in the stock and debt securities of other companies are accounted for differently depending on the nature of the investments. For instance, you'll see that investment securities categorized as securities held-to-maturity are reported at amortized cost, while securities available-for-sale and trading securities are reported at their fair values.

We also discuss the equity method—a completely different way to record and report investments in stock when specific characteristics indicate that the investor can significantly influence the operating and financial policies of the investee.



Demonstrate how to identify and account for investments classified for reporting purposes as held-tomaturity.

Demonstrate how to identify and account for investments classified for reporting purposes as available-for-sale.

Demonstrate how to identify and account for investments classified for reporting purposes as trading securities.

Explain what constitutes significant influence by the investor over the operating and financial policies of the investee.

Demonstrate the way investments are recorded and reported by the equity method.

Explain the adjustments made in the equity method when the fair value of the net assets underlying an investment exceeds their book value at acquisition.





To learn more about the book this website supports, please visit its Information Center.
(c)2007 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Spiceland Intermediate Online Learning Center

Home > Chapter 12