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 and reporting requirements for investment securities and includes specific examples to illustrate the application. Key aspects of debt securities, such as classification, purchases, transfers, impairments, and presentation and disclosure, are addressed. The course also discusses how to account for equity securities and the impairment of investments. Finally, the course explains when to use the equity method and how to apply the equity method.
Course Publication Date:
October 05, 2021
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
$40.00!
| Author: | Delta CPE |
| Course No: | ACT-INVEST-40071 |
| Recommended CPE: | 4.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
|
|
|
|
Learning Objectives
- Identify the characteristics of trading securities, available-for-sale securities, and held-to-maturity securities.
- Recognize the proper accounting treatment for investments in debt securities.
- Identify how purchases, sales, and changes in fair value of securities affect different accounts.
- Recognize the accounting models that apply to credit impairment of debt securities.
- Recognize the proper accounting treatment for investments in equity securities.
- Identify the proper classification and disclosure for investments in securities.
- Identify the requirements for when to use the equity method, how to apply the equity method, and what disclosures are necessary.