Accounts in English INVEST MENT Investment Accounting for

  • Slides: 5
Download presentation
Accounts in English INVEST MENT

Accounts in English INVEST MENT

Investment • Accounting for Trading Securities. • Accounting for Available for sale securities. •

Investment • Accounting for Trading Securities. • Accounting for Available for sale securities. • Accounting for Held to Maturity Securities.

Accounting for Trading Securities TRA DING SEC URI TI ES ARE FREQ UENTLY BOUGHT

Accounting for Trading Securities TRA DING SEC URI TI ES ARE FREQ UENTLY BOUGHT AND SOLD TO GENER AT E PRO FI TS ON SHORT-TERM CHAN GES IN THEIR PRICES T HEY ARE C LAS SI FIED AS CURRENT ASSETS ON THE BALANCE SHE ET AND AR E VALUED AT FAIR VALUE, WHICH IS USUALLY T HE SAME AS MARKET VALUE. AN IN CREASE OR DECREA SE I N TH E F AIR VALUE OF A COMPAN Y'S TOTAL TRA DING PO RTF OL IO (THE GROUP OF SECURITIES IT HOLDS FOR TRA DI NG P URP OS ES ) IS INCLUDED IN NET INCOME IN THE ACCOUNTI NG PE RIOD I N WHICH THE INCREASE OR DECREASE OCCURS.

Accounting for Available for sale securities. SHORT -T ERM AVAIL ABLE -FOR- SALE SECURITIES

Accounting for Available for sale securities. SHORT -T ERM AVAIL ABLE -FOR- SALE SECURITIES ARE ACCOUNTED IN THE SA ME WAY AS TRADING SECURITIES WITH TWO EXCEPTIONS: 1. AN UNRE ALI ZED GAI N OR LOSS IS REPORTED AS A SPECIAL ITEM IN TH E ST OC KH OL DE R’S EQ UITY SECTION OF THE BALANCE SHEET NOT AS A G AIN OR LOSS ON THE INCOME STATEMENT. 2. IF A DECL INE I N TH E VALUE OF A SECURITY IS CONSIDERED PER MA NENT, I T I S C HARGED AS A LOSS ON THE INCOME ST AT EMENT.

Accounting for Held to Maturity Securities HELD - TO -MATU RITY SE CURITIES ARE

Accounting for Held to Maturity Securities HELD - TO -MATU RITY SE CURITIES ARE SECURITIES THAT MANA GEMENT INTE NDS TO HOLD TO THEIR MATURITY DATE. SUCH SE CURI TI ES ARE REC ORD ED AT COST AND ARE VALUED ON THE BALANCE SHE ET AT C OS T ADJUSTED FOR THE EFFECTS OF INTEREST.