Accounting for Debt and Equity Investments (Trading - Available for Sale - HTM - Equity Method)
In this video, we'll be covering the various different methodologies to account for investments. Take the Accounting for Investments quiz after watching this video: • 10 Investment Accounting Quiz Questions an...
We will specifically go over the accounting for:
✅ Trading Securities (Equity or Debt)
✅ Available for Sale Debt Securities (Primarily Debt only)
✅ Held to Maturity Securities (Debt only)
✅ Equity Method (Equity only)
➡️ Trading Securities (ASC 825-10):
This part will give you a comprehensive overview of how to account for your trading security investments based on ASU 2016-01 (generally accepted accounting principles).
➡️ Available for Sale
In this part, I'm going to share with you intermediate accounting related to GAAP Accounting for Investments: Available For Sale Debt Securities. We will go over how to fair value adjustments for unrealized gains and/or losses.
Financial Accounting states that the classification of available for sale (AFS) only applies to debt securities as ASU 2016-01 made equity securities trading securities for GAAP purposes.
➡️ Held to Maturity Securities
In this part, we'll continue our discussion of GAAP intermediate accounting for investments and discuss held to maturity securities. We will go into ASC 320-10-25-1 Classification of Debt
Securities. This is an exception to fair market accounting as held to maturity investments are recorded at cost and are not adjusted.
➡️ Equity Method
In this part, we continue our discussion of GAAP Accounting for Investments using the Equity Method. We explain how to analyze and record your equity method journal entries which includes:
ASC 323-10-15-3
ASC 323-10-45-1
ASC 323-10-35-17
ASC 323-30-25-1
📌Also check out the following case studies on Accounting for Investments:
➡️ Reviewing Silicon Valley Banks Investment Accounting - Real Example from 10k
• GAAP Accounting Case Study: Silicon Valley...
➡️ Reviewing what’s inside PacWest Bancorp's 10k
• GAAP Case Study: The Banking collapse of P...
➡️ Reviewing Available for Sale and Held to Maturity Securities using First Republic Banks 10k
• GAAP Case Study: First Republic Bank’s 10K...
==================================
I post daily accounting and finance quizzes
/ @patrickbraycpa
==================================
0:00 Introduction
0:18 Trading Securities
3:39 Available-For-Sale Investments
7:31 Held to Maturity Investments
10:34 Equity Method Investments
#accountingforinvestments #intermediateaccounting #gaap #equitymethod #accounting #investmentaccounting #financialreporting #tradingsecurities #availableforsale #availableforsalesecurities #heldtomaturity #investmentaccounting #investments