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A304: Appendix - Coggle Diagram
A304: Appendix
Debt Securities (always passive)
Held to maturity investments
Ammortized Cost
non-current unless they mature within next 12 months
Don't adjust value (not planning to sell)
Trading securities
fair value method
through Net Income
current
Bonds that are sold within 3-6 months
Available-for-sale securities
fair value method
through OCI
not on the income statement (its on AOCI)
current or non current
Bonds sold within 6 months to 30 years etc.
Equity Securities
Stock investment for significant influence
noncurrent
Equity Method
Stock investment for control
N/A financial statements ar consolidated
Acquisition accounting and consolidation
Stock investment for NO significant influence (passive)
fair value method
through Net Income
affected by the stock market
current or noncurrent
Measuring and Reporting Methods
Fair Value
affected by interest rates
Equity Method
investment account reflects the performance of the company
Acquisition accounting and consolidation
include assets, liabilities, and net income in combined statements