Search PPTs

Saturday, November 16, 2013



INVESTMENTS Presentation Transcript: 

Different motivations for investing:
To earn a high rate of return.
To secure certain operating or financing arrangements with another company.

Companies account for investments based on
the type of security (debt or equity) and
their intent with respect to the investment.

4.Investments in Debt Securities
U.S. government securities
Municipal securities
Corporate bonds
Convertible debt
Commercial paper

5.Held-to-Maturity Securities
Classify a debt security as held-to-maturity only if it has both
the positive intent and
the ability to hold securities to maturity.

6.Available-for-Sale Securities
Companies report available-for-sale securities at:
fair value, with
unrealized holding gains and losses reported as part of comprehensive income (equity).

7.Investments in Equity Securities
Represent ownership of capital stock.
Cost includes:
price of the security, plus
broker’s commissions and fees related to purchase.

No comments:

Related Posts Plugin for WordPress, Blogger...

Blog Archive