中南财经政法大学：《中级会计学 Intermediate Accounting》课程电子教案（PPT课件讲稿，英文版）Chapter 12 Investments

12 nvestments ntermediate Accounting Accounting School. Zhongnan

12 Investments Accounting School ·Zhongnan University of Economics & Law ntermediate Accounting I 中级会计学

Intermediate Accounting 12 Investments 1. Classification and valuation of Investments 1) Trading securities 2) Available-for-sale $ securities 3)Held-to-maturity debt securities

1. Classification and Valuation of Investments 1) Trading securities 2) Available-for-sale securities 3) Held-to-maturity debt securities Intermediate Accounting 12 Investments

Intermediate Accounting 12 Investments Classification of Investments Trading securities are investments in debt and equity securities that are purchased and held principally for the purpose of selling them in the near term

Classification of Investments Trading securities are investments in debt and equity securities that are purchased and held principally for the purpose of selling them in the near term. Intermediate Accounting 12 Investments

Intermediate Accounting 12 Investments Trading securities These securities are reported at their fair market value on the balance sheet date. and unrealized holding gains and lo osses are included in net income of the period

Trading Securities Trading securities are investments in debt and equity securities that are purchased and held principally for the purpose of selling them in the near term. These securities are reported at their fair market value on the balance sheet date, and unrealized holding gains and losses are included in net income of the period. Intermediate Accounting 12 Investments

Intermediate Accounting 12 Investments Classification of Investments nvey sa (b) debt and equity securities that are not clas classified as trading securities

Investments in available-for￾sale securities are (a) debt securities that are not classified as being held to maturity, and... …(b) debt and equity securities that are not classified as trading securities. Intermediate Accounting 12 Investments Classification of Investments

Intermediate Accounting 12 Investments Classification of Investments Investments in available-for-sale securities are reported at their fair value on the balance sheet date The unrealized holding gains or d osses are included in other comprehensive income

Investments in available-for-sale securities are reported at their fair value on the balance sheet date. The unrealized holding gains or losses are included in other comprehensive income. Intermediate Accounting 12 Investments Classification of Investments

Intermediate Accounting 12 Investments Classification of Investments Therefore, the unrealized holding gains and losses are not included in net income for the available- for-sale securities

Therefore, the unrealized holding gains and losses are not included in net income for the available￾for-sale securities. Intermediate Accounting 12 Investments Classification of Investments

Intermediate Accounting 12 Investments Classification of Investments Investments in held-to-maturity debt securities are debt securities for which the company has the positive intent and ability to hold until they mature

Investments in held-to-maturity debt securities are debt securities for which the company has the positive intent and ability to hold until they mature. Intermediate Accounting 12 Investments Classification of Investments

Intermediate Accounting 12 Investments Classification of Investments Investments in held-to-maturi debt securities are reported at their amortized cost on the balance sheet. not their fair value

Investments in held-to-maturity debt securities are reported at their amortized cost on the balance sheet…not their fair value. Intermediate Accounting 12 Investments Classification of Investments

Accounting for Investments Reporting of Unrealized holding Method Gains and losses Investment in Equity securities 1. No significant influence a. Trading Fair value Net Income b. Available for sale Fair value Other comprehen SIve income 2. Significant influence Equity method Not recognized 3. Control Consolidation Not recognized

Accounting for Investments Reporting of Unrealized Holding Method Gains and Losses Investment in Equity Securities 1. No significant influence a. Trading Fair value Net Income b. Available for sale Fair value Other comprehen￾sive income 2. Significant influence Equity method Not recognized 3. Control Consolidation Not recognized Intermediate Accounting 12 Investments