文档介绍：Chapter 15
Investments and International Operations
Chap 15. Investments and International Operations
Class of Investment
Held-to-Maturity
Trading
Unrealized gain/loss goes to Net Income
Available-For-Sale
Unrealized gain/loss bypass Net Income
Significant Influence
Controlling Influence
Classes of and Reporting for Investments
Held-To-Maturity
Available-For-Sale
Significant Influence
Controlling Influence
Consolidate
Equity Method
Market Value Method
Trading
Amortized（摊销） Cost
Class of Investment
Reporting
C2
Basics of Investments
Companies transfer excess cash into investments to produce higher income.
Some companies are set up to produce income from investments.
Companies make investments for strategic reasons.
Motivation for Investments
C1
Basics of Investments
Short-Term versus Long-Term Investments
Short-term investments:
are securities that management intends to convert to cash with one year or the operating cycle, whichever is longer.
are readily convertible to cash.
Long-term investments:
are not readily convertible to cash.
are not intended to be converted to cash.
are reported in the noncurrent section of the balance sheet, often in its own category.
C1
Classes of and Reporting for Investments
Held-To-Maturity
Available-For-Sale
Significant Influence
Controlling Influence
Consolidate
Equity Method
Market Value Method
Trading
Amortized Cost
Class of Investment
Reporting
C2
Basics of Accounting for Investments
Accounting Basics for Debt Securities
Debt securities are recorded at cost when purchased. Interest revenue for investments in debt securities is recorded when earned.
On January 1, 2008, Matrix, Inc. paid Debt Inc. $975,000 for the bonds. The two-year Debt Inc. bonds have a stated rate of 6% annually. Interest is paid semi-annually on June 30 and December 31.
C2
Basics of Accounting for Investments
Accounting Basics for Debt Securities
Held-to-maturity (HTM) debt securities are recor