Investment held for trading accounting
Can anyone give me a summary of these classications. What do they mean and how are they treated on the financial statements? I keep mixing them up, especially held for sale and held for trading.
Held to Maturity Securities: Bonds that you plan and are able to hold to maturity. Reported at cost with any premium or discount amortized over the remaining life. Coupon payments go through the income statement. If sold or put option or conversion option exercised prematurely, any gain or loss goes through the income statement; this may lead to tainting the category if a significant portion is sold prematurely.
Stocks or bonds that you plan to investment held for trading accounting in the near future. Reported at fair market value. Cash flows coupons and investment held for trading accounting go through the income statement. Stocks or bonds you do not plan to sell in the near future. Designated at Fair Value Securities: Stocks or bonds that you do not plan to sell in the near future.
Reporting is the same as for Trading Securities. Financial Exam Help I may know the latter: So the company just decides whether or not it wants to classify securities as held to maturity or available for sale because both of them are not for sale?
As long as the disclose this information investment held for trading accounting the footnotes, this is fine? Skip to main content. Be prepared with Kaplan Schweser. Study for Success in Think of it like a Bond Held For Sale: Think of it like an item used for daily operations Personally, the more questions I did, the more I got used to the different terms. Smagician May 29th, 7: Simplify the complicated side; don't complify the simplicated side.
Smagician May 29th, 8: Leah May 29th, 8: Smagician May 29th, investment held for trading accounting