Chapter 18 Investments Debt Securities Equity Securities.

Slides:

Advertisements

Similar presentations

Chapter 9--Learning Objectives

Advertisements

1 Investments Sid Glandon, DBA, CPA Associate Professor of Accounting The University of Texas at El Paso.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Investments 12.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Reporting and Interpreting Investments in Other Corporations Chapter 12.

COPYRIGHT © 2007 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Appendix D Investments in Other Corporations © 2009 The McGraw-Hill Companies, Inc.

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Appendix D Investments in Other Corporations PowerPoint Authors:

CHAPTER 17 Investments in Debt and Equity Securities ……..…………………………………………………………... Debt held-to-maturity Debt plan to sell Equity plan to sell Equity exercise.

13 Investments and Fair Value Accounting

17 Chapter Investments Intermediate Accounting 12th Edition

Mergers, Acquisitions, and Other Inter- corporate Investments.

BUS780 Chapter 11 Marketable Securities, Derivatives and Investments.

© Copyright D Hillman Investments in Stocks and Bonds.

Chapter 9  Investments. Chapter 9Mugan-Akman Investments Idle cash Strategic investments Financial instruments –Equity instruments (stocks)

© 2004 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 12 Investments.

12-1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA.

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.

© 1999 by Robert F. Halsey Agenda Items to be covered: Equity investments Debt investments.

Debt and Equity Investments Pertemuan 11, 12 dan 13 Matakuliah: F0054/Akuntansi Keuangan 2 Tahun : 2007.

Investments in Stocks and Bonds of Other Companies Chapter 23.

Investments Sid Glandon, DBA, CPA Assistant Professor of Accounting The University of Texas at El Paso.

Accounting Clinic III.

Intermediate Accounting

4/20/2017 Chapter 12 Investments.

Investments in Debt and Equity Securities. TEMPORARY INVESTMENTS  Use of idle cash  Low risk investments  Quickly and easily converted to cash  Securities.

BMGT 220, Chapter 12 Discussion Kristian Sooklal (cell) | (text)

CHAPTER 9. Chapter 9Mugan-Akman Investments purpose –as line of business –idle cash –strategic financial instruments –stocks –bonds –derivatives.

McGraw-Hill /Irwin© 2009 The McGraw-Hill Companies, Inc. INVESTMENTS Chapter 12.

Chapter 4 Investments.

Tools for Business Decision-Making Fourth Canadian Edition Financial Accounting: Prepared by: Peggy Coady Memorial University of Newfoundland & Catherine.

BUS 120: Financial Accounting Chapter 13: Investments

Chapter 17: Investments Intermediate Accounting, 11th ed.

Reporting and Interpreting Investments in Other Corporations Chapter 12 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

McGraw-Hill /Irwin© 2009 The McGraw-Hill Companies, Inc. INVESTMENTS Chapter 12.

Investments in Debt and Equity Securities Investments in Debt and Equity Securities C H A P T E R 12.

1InvestmentsInvestments C hapter Explain the classification and valuation of investments. 2. Account for investments in debt and equity trading.

Chapter 10 Investments. Learning Objectives 1.Identify why companies invest in debt and equity securities and classify investments 2.Account for investments.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2006 Investments and International Operations Chapter 15.

CHAPTER 9. Chapter 9Mugan-Akman Investments as line of business idle cash purpose financial instruments  stocks  bonds  derivatives.

© The McGraw-Hill Companies, Inc., 2002 Slide 16-1 McGraw-Hill/Irwin 16 Long-Term Investments and International Transactions.

FINANCIAL ACCOUNTING Tools for Business Decision-Making KIMMEL  WEYGANDT  KIESO  TRENHOLM  IRVINE CHAPTER 12: REPORTING AND ANALYZING INVESTMENTS.

Investments C hapter 15 COPYRIGHT © 2010 South-Western/Cengage Learning Intermediate Accounting 11th edition Nikolai Bazley Jones An electronic presentation.

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA APPENDIX.

Accounting Clinic III McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

1 CHAPTER 23 INVESTMENTS IN STOCKS AND BONDS OF OTHER COMPANIES.

Acct Chapter 181 Investments In general, investments in debt and equity securities are categorized as three types: Held to maturity (debt securities.

Mediavillo, Felix Orantia, Genesis Elegue, John 2BFM.

Chapter 17: Investments 1. 2 Investment in Marketable Equity Securities - Overview Equity investments represent ownership of another company’s outstanding.

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA APPENDIX.

Chapter One The Equity Method of Accounting for Investments McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

©CourseCollege.com 1 19 Investments Learning Objectives 1.Account for Trading Investments 2.Account for Debt Investments 3.Account for Stock Investments.

Chapter 16-1 CHAPTER 16 INVESTMENTS Accounting Principles, Eighth Edition.

Invest Investments – Debt and equity (long-term, short-term)

Chapter 13: Investments Fundamentals of Intermediate Accounting

Module 7: Intercorporate Investments

Companies make investments for three reasons.

Investments in Other Corporations

Intercorporate Investments and Consolidations

Chapter 17: Investments Intermediate Accounting, 11th ed.

ACCOUNTING FOR VARIOUS INVESTMENTS

Pretest Chapter 17 This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these.

Chapter 12 Investments.

Chapter 18: Investments Intermediate Accounting, 10th Edition

Chapter 17: Investments Intermediate Accounting, 11th ed.

C H A P T E R 17 INVESTMENTS Intermediate Accounting 13th Edition

significant influence

C 14 hapter Investments

An electronic presentation Pepperdine University

© 2015 Pearson Education, Limited.

Presentation transcript:

Chapter 18 Investments Debt Securities Equity Securities

Investments in Debt Securities Represent a creditor relationship with an enterprise –U.S. government securities –Municipal securities –Corporate bonds –Convertible debt –Commercial paper –All securitized debt instruments

Three separate portfolios –Held to Maturity –Trading Securities –Available for Sale Valuation and Reporting of Investments in Debt Securities

Investments in Debt Securities (SFAS 115) ValuationUnrealized Holding Gains or Losses Held-to- Maturity Amortized Cost Not recognized Trading Securities Fair ValueRecognized in net income Available- for-sale Fair ValueRecognized in comprehensive income and as a separate component of stockholders’ equity

Held to Maturity –Entity must have positive intent and ability to hold securities until maturity. –Carried at amortized cost Valuation and Reporting of Investments in Debt Securities

Trading Securities –Used to generate profits from short- term differences in prices. –Holding period is usually less than 3 months. –Reported at fair market value. –Unrealized gains and losses reported in net income. –Discount or premium is not amortized.

Available for Sale: –Reported at fair market value. –Unrealized gains and losses reported in comprehensive income and as a separate component of stockholders’ equity. Valuation and Reporting of Investments in Debt Securities

Investments in Equity Securities Ownership interests such as common, preferred, or other capital stock Rights to buy and sell the ownership interests (i.e., warrants, rights, call options, and put options).

Investments in Equity Securities Percentage of Ownership Less than 20% 20% - 50% More than 50% Level of Influence Little or None SignificantControl Valuation Method Fair Value Method (SFAS 115) Equity Method (APB 18) Consolidation

Two separate portfolios –Trading Securities (TS) –Available for Sale (AFS) No Held to Maturity (HTM) portfolio because shares do not have a maturity date. Valuation & Reporting of Equity Securities: Fair Value Method

Available-for-Sale –Recorded at cost when acquired –Valued and reported at fair value subsequent to acquisition –Unrealized holding gains and losses are reported as: Part of comprehensive income, and A component of stockholders’ equity Trading Securities –Recorded at cost when acquired –Valued and reported at fair value subsequent to acquisition –Unrealized holding gains and losses are reported in net income Valuation & Reporting of Equity Securities: Fair Value Method

Investments in Equity Securities: Fair Value Method Vs. Equity Method Fair Value MethodEquity Method Dividends received from investee Recorded as dividend revenue Recorded as a decrease to carrying value of investment account Investor’s share of investee’s net income (loss) Not recognizedRecognized as income (loss) and as increase (decrease) to carrying value of investment Changes in fair value of investment Recognized either in net income (TS) or as a component of stockholders’ equity (AFS) Not recognized