INTERMEDIATE ACCOUNTING ACCESS 540 DAY
INTERMEDIATE ACCOUNTING ACCESS 540 DAY
10th Edition
ISBN: 9781264706327
Author: SPICELAND
Publisher: MCG
Question
Book Icon
Chapter 12, Problem 12.8Q
To determine

Held-to-maturity security: The debt securities which are held by the investor with an intent to hold the investment till its maturity, are referred to as held-to-maturity securities.

Trading securities: These are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices.

Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

To indicate: The reclassified category of debt investment in Company L, in the books of Company WD

Blurred answer
Students have asked these similar questions
Western Die-Casting Company holds an investment in unsecured bonds of LGB Heating Equipment, Inc. Whenthe investment was acquired, management’s intention was to hold the bonds for resale. Now management has thepositive intent and ability to hold the bonds to maturity. How should Western account for the reclassification ofthe investment?
Croger Manufacturing Inc. makes an investment in securities that they intend to hold for a period of time that is unspecified. How will this investment be reported?  Multiple Choice  Fair value.  Present value.  Historical cost.  Lower of cost or market.
4. Boss Co. purchased bonds at a discount in the open market as an investment. The bonds will be held in order to collect their contractual cash flows. Boss should account for these bonds at a. Cost. c. Fair value through OCI. d. Lower of cost or market. b. Amortized cost. 5. According to PFRS 9, on initial recognition, the entity has the option of designating financial assets to be measured at FVPL

Chapter 12 Solutions

INTERMEDIATE ACCOUNTING ACCESS 540 DAY

Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT