Accounting for Investments
Field of Study:
Companies have different motivations for investing in securities issued by other companies. One motivation is to earn a high rate of return.
Another motivation for investing (in equity securities) is to secure certain operating or financing arrangements with another company.
This course addresses the accounting for debt and equity investments and disclosure requirements. To provide useful information, companies
account for investments based on the type of security (debt or equity) and their intent with respect to the investment. The course organizes
the study of investments by type of security. Within each section, it explains how the accounting for investments in debt and equity
securities varies according to management intent.
After completing this course you will be able to:
- Recognize the differences between trading securities, available-for-sale securities, and held-to-maturity securities.
- Identify the categories of equity securities and the accounting and reporting treatment for each category.
- Identify the three categories of debt securities and the accounting and reporting treatment for each category.
- Properly identify how purchases, sales, and changes in fair value of securities affect accounts.
- Recognize the proper classification and disclosure of investments in securities.
- Determine when it is appropriate to use the equity method to account for investments in other companies.
Type of delivery method:
Recommended CPE credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org