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INVESTMENT (Debt Investments (Fair Value (Follow the same accounting…

- - - - Investee's losses and and dividends decrease the investment's carrying amount
      - Investee's earnings increase the investment's carrying amount
      - Adjusts the amount each period for changes in the investee's net assets
      - Investee losses exceed carrying amount of the investments
        
        If the investor's potential loss is not limited, the investor should recognize additional loss
        
        Investor should discontinue applying the equity method and not recognize additional losses
  - - - Trading
        
        Trading Investment - Recognize any unrealized holding gain or loss as Other Income and Expense (part of Net Income)
      - Non trading
        
        Available for Sale (AFS) - Recognize any unrealized holding gain or loss as Other Comprehensive Income (OCI) (separate component of equity)
- - - - Debits to Loss on Impairment and credits to Debt Investments
    - - Debit to Debt Investments and credits to Recovery of Impairment Loss
      - Shall not exceeds the amortized cost
- - - - Contractual cash flow characteristics of the financial asset
        
        Debt Investment
        
        amortized cost
      - Company's business model for managing its financial asset
        
        Equity investment
        
        fair value
        
        Debt investment
        
        trading investment
        
        fair value
        
        Hold to maturity
        
        amortized cost