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U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
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U.S. GAAP
Codification of Accounting Standards |
| U.S. GAAP Codification Updates |
| Principles of Accounting, Intermediate Accounting, Advanced Accounting |
| Accounting Terms |
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Codification Topic 320 Investments-Debt and Equity Securities Investments in Debt and Equity Securities Debt securities: represent creditor relationship Equity securities: represent ownership interest Investments in Equity Securities 1. more than 50% of voting power --> prepare consolidated financial statements 2. 20% or more, but no more than 50% --> equity method accounting 3. less than 20% --> classified as either (a) or (b) (a) trading securities (b) available for sale securities Investments in Debt Securities 1. Held-to-maturity securities --> intent and ability to hold until maturity 2. No intent or ability to hold until maturity --> classified as either (a) or (b) (a) trading securities (b) available for sale securities Trading Securities Characteristics (a) "active and frequent" buying and selling (b) profits on "short-term price differences" Available for Sale (AFS) Securities Securities not classified as either (a) or (b) (a) Trading Securities (b) Held-to Maturity (HTM) Securities Measurement of Investments in Securities 1. Trading Securities: Fair Value 2. AFS Securities: Fair Value 3. HTM Securities: Amortized Cost Changes in Fair Value: Unrealized holding gains or losses 1. Trading Securities: recognized in earnings 2. AFS Securities: recognized in Other Comprehensive Income (OCI), not in earnings 3. HTM Securities: not recognized Impairment of AFS and HTM Securities If the decline in fair value is "other than temporary" --> recognize impairment losses in earnings |
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Codification Topic 320 Investments-Debt and Equity Securities |
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Subtopics of Codification Topic 320 320-10 Overall |
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Accounting Terms of Codification Topic 320-10 Amortized cost basis Asset group Available-for-sale securities Component of an equity Cost basis Debt security Equity security Fair value Holding gain or loss Operating segment Readily determinable fair value Reporting unit Retrospective interest method Security Structured note Trading Trading securities |
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