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Week 3 you will submit a 1-2 page report with at least 1 reference This is expected to be college-level writing. The report(s) need to be one that your instructor wants to read. All written documents and sources used are to be submitted in APA format (use the writing center as needed). APA Formatting & Style In a continuation of their efforts to explore the financial condition of ABC Company, the Board of Directors has now started to explore the various investment strategies of the company. They would like to understand more about the differences between debt versus equity investments. They also wish to learn more about the various types of investments reported on the Balance Sheet. Using your text and outside sources, explain the following: (1) debt versus equity securities; (2) various types of investments such as those listed in Exhibit 15-2; and (3) how to account for these investments (refer to Exhibit 15-8 as a guide). Keep in mind the intended audience of the memo. To: From: [Student Name] Date: [Enter Date] Subject: [Enter Subject] References

Accounting Summary for Investments in Securities E it 15.8 Classification Accounting Short-Term Investment in Securities Cost (without any discount or premium amortization) Held-to-maturity (debt) securities . . Trading (debt and equity) securities Available-for-sale (debt and equity) securities .. . .....Fair value (with fair value adjustment to income) . Fair value (with fair value adjustment to equity) Long-Term Investment in Securities Held-to-maturity (debt) securities . .. . . ..Cost (with any discount or premium amortization) Available-for-sale (debt and equity) securities . . . . . . .Fair value (with fair value adjustment to equity) Equity securities with significant influence .. . . . .. . Equity securities with controlling influence .. . . . . .. Equity method Equity method (with consolidation) Exhibit 15.8 on page 634 65 Learning Objective C2: Describe how to report equity securities with controlling in fuence Accounting Summary for Investments in Securities E it 15.8 Classification Accounting Short-Term Investment in Securities Cost (without any discount or premium amortization) Held-to-maturity (debt) securities . . Trading (debt and equity) securities Available-for-sale (debt and equity) securities .. . .....Fair value (with fair value adjustment to income) . Fair value (with fair value adjustment to equity) Long-Term Investment in Securities Held-to-maturity (debt) securities . .. . . ..Cost (with any discount or premium amortization) Available-for-sale (debt and equity) securities . . . . . . .Fair value (with fair value adjustment to equity) Equity securities with significant influence .. . . . .. . Equity securities with controlling influence .. . . . . .. Equity method Equity method (with consolidation) Exhibit 15.8 on page 634 65 Learning Objective C2: Describe how to report equity securities with controlling in fuence

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