chapter14Investments-西方-财务会计-电子课件VIP免费

Chapter14InvestmentsOverview:WhyInvestInFinancialInstrumentTemporaryInvestmentofIdleCashLong-TermInvestmentstoincreaseEarningsValuationandinvestmentincomemeasurementInvestmentindifferentsecuritiesSecuritiesareeitherdebtsecuritiesorequitysecurities.Adebtsecurityisanysecurityrepresentingacreditorrelationshipwithanentity.Aequitysecurityisanysecurityrepresentinganownershipinterestinanentity.CostAndAmortizedCostMethodCostmethodInvestmentinequitysecuritiesFairvalueofthosesecuritiesarenotdeterminableDonotrequireequitymethodTheinvestmentiscarriedatitscostonthebalancesheetDividendsarerecordedasinvestmentincomeSeeExample1inp.g.248-249AmortizedCostmethodInvestmentindebtsecuritiesHoldthesecuritiestothematuritydateSeeExample2inp.g.250TradingSecurities-fairvaluemethodTradingsecuritiesareusedtogenerateprofitsfromshorttermdifferencesinprices.ThesecuritiesarereportedatfairvalueUnrealizedgainsandlossesarereportedaspartofnetincomeSeeExample3onpage251Available-for-SaleDebtSecuritiesTheseinvestmentsarereportedatfairvalueinthebalancesheet.DifferencesbetweenthefairvalueandamortizedcostarereportedasOE:Accumulatedunrealizedholdinggainsandlosses(partofequity)Whenrealized,gainsandlossesinfairvaluearereportedaspartofnetincomeSeeExample4onpage253EquityMethodAsubstantiveeconomicrelationshipisacknowledgedbetweentheinvestorandtheinvesteeTheinvestment’scarryingvalueisincreasedbyinvestor’sproportionateshareofearningsTheinvestment’scarryingvalueisdecreasedby:investor’sproportionateshareoflossesdividendsreceivedbyinvesteeSeeExampleonpage255.InvestmentsinEquitySecurities:GoodwillTobeexplainedinChapter16InvestmentsinEquitySecurities:SummaryOwnershipinCapitalStockOwnershipinCapitalStocklessthan20%ofvotinglessthan20%ofvoting20-50%ofvoting20-50%ofvotingmorethan50%votingmorethan50%votingTradingAvailableforSaleEquitymethodConsolidationFairvalueFairvalueEquitymethodNoConsolidationDebtSecurities:TypesandReportedAmountsDebtInstrumentsrepresentingaCREDITORrelationshipM.V.changesrecordedaspartofincomeM.V.changesrecordedasotherincomeoraspartofequityM.V.changesnotrecognizedTRADINGSecuritiesAvailableforSaleHeld-to-MaturityRecordatfairvalueRecordatfairvalueRecordatAmortizedcostEquitySecurities:AccountingbyCategoryCategoryCategoryValuationValuationUnrealizedHoldingUnrealizedHoldingInvest.IncomeInvest.IncomeMethodGainsandLossesEffects(I/S)MethodGainsandLossesEffects(I/S)<20%CostNoneDividendsPermanentimpairment<20%FairvalueNetincome(I/S)Dividends;TradingG&L(sale)20%-Equity-Proportionate50%investee’sincome>50%Consolidate-ProportionateSubsidiary’sincome(ParentcompanyseparateF/S)<20%FairvalueEquity(B/S)DividendsandAvailforsaleG&L(sale)