Companies have different motivations for investing in securities issued by other companies. One motivation is to earn a high rate of return. Another motivation for investing (in equity securities) is to secure certain operating or financing arrangements with another company. This course addresses the accounting for debt and equity investments and disclosure requirements. To provide useful information, companies account for investments based on the type of security (debt or equity) and their intent with respect to the investment. The course organizes the study of investments by type of security. Within each section, it explains how the accounting for investments in debt and equity securities varies according to management intent.
Course Publication Date:
August 08, 2019
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$25.00!
| Author: | Delta CPE |
| Course No: | ACT-INVEST-40079 |
| Recommended CPE: | 2.50 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Recognize the differences between trading debt securities, available-for-sale debt securities, and held-to-maturity debt securities.
- Identify the categories of debt securities and the accounting and reporting treatment for each category.
- Properly identify how purchases, sales, and changes in fair value of securities affect accounts.
- Recognize the proper classification and disclosure of investments in securities.
- Determine when it is appropriate to use the equity method to account for investments in other companies.