What are the two main types of investment securities thatcompanies hold? What are the...

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Accounting

What are the two main types of investment securities thatcompanies hold? What are the key issue in accounting for theseinvestment securities, including cost and fair value accounting?Discuss accounting for investment in debt securities, includingheld-to-maturity, trading, and available-for-sale securities, atinitial recognition and subsequent to acquisition. Discuss indetail accounting for investment in equity securities when theinvestor has no significant influence and the securities are heldas trading securities or available-for-sale securities at initialrecognition and subsequent to acquisition. Include accounting forinvestment without readily determinable fair values. Discussaccounting for investment in equity securities where the investorhas significant influence over the investee company. Explain the accounting procedures for long-term notes receivable.Discuss the fair value option in accounting for investing assets.What are the required disclosures for investing assets.

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Basically the two type of securities which are issued by a Company are Equity and Debt Equity stands for the Share Capital which is issued to Public and the money collected is used into business Debit is the another option for a Company where Company approaches to Banks and Financial Institutions for Loans and these are long term loans Interest on Debt is the return to the Bankers The difference between the cost of equity and cost of debt is different for tax point of view Dividend is declared or paid on Equity shares which is at the will of the Company and it is not tax deductible Dividend is recorded below the line and it is an appropriation out of profits See Answer

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In: AccountingWhat are the two main types of investment securities thatcompanies hold? What are the key...What are the two main types of investment securities thatcompanies hold? What are the key issue in accounting for theseinvestment securities, including cost and fair value accounting?Discuss accounting for investment in debt securities, includingheld-to-maturity, trading, and available-for-sale securities, atinitial recognition and subsequent to acquisition. Discuss indetail accounting for investment in equity securities when theinvestor has no significant influence and the securities are heldas trading securities or available-for-sale securities at initialrecognition and subsequent to acquisition. Include accounting forinvestment without readily determinable fair values. Discussaccounting for investment in equity securities where the investorhas significant influence over the investee company. Explain the accounting procedures for long-term notes receivable.Discuss the fair value option in accounting for investing assets.What are the required disclosures for investing assets.