chapter14Investments-西方-财务会计-电子课件.ppt

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Chapter 14,Investments,Overview:Why Invest In Financial Instrument,Temporary Investment of Idle Cash,Long-Term Investments to increase Earnings,Valuation and investment income measurement,Investment in different securities,Securities are either debt securities or equity securities.,A debt security is any security representing a creditor relationship with an entity.,A equity security is any security representing an ownership interest in an entity.,Cost And Amortized Cost Method,Cost method,Investment in equity securities,Fair value of those securities are not determinable,Do not require equity method,The investment is carried at its cost on the balance sheet,Dividends are recorded as investment income,See Example 1 in p.g.248-249,Amortized Cost method,Investment in debt securities,Hold the securities to the maturity date,See Example 2 in p.g.250,Trading Securities-,fair value method,Trading securities are used to generate profits from,short term differences,in prices.,The securities are reported,at fair value,Unrealized,gains and losses are reported as part of net income,See Example 3 on page 251,Available-for-Sale Debt Securities,These investments are reported,at fair value,in the balance sheet.,Differences,between the fair value and amortized cost are reported as,OE:,Accumulated unrealized holding gains and,losses,(part of equity),When realized,gains and losses in fair value are reported as part of,net income,See Example 4 on page 253,Equity Method,A,substantive,economic relationship is acknowledged between the investor and the,investee,The investments carrying value is,increased,by investors proportionate share of earnings,The investments carrying value is,decreased,by:,investors proportionate share of losses,dividends received by,investee,See Example on page 255.,Investments in Equity Securities:Goodwill,To be explained in Chapter 16,Investments in Equity Securities:Summary,Ownership in Capital Stock,less than,20%of voting,20-50%,of,voting,more than,50%voting,Trading,Available,for Sale,Equity,method,Consolidation,Fair,value,Fair,value,Equity,method,No,Consolidation,Debt Securities:Types and Reported Amounts,Debt Instruments representing a,CREDITOR relationship,M.V.changes,recorded as part,of income,M.V.changes,recorded as other,income or as part,of equity,M.V.changes,not recognized,TRADING,Securities,Available,for Sale,Held-to-,Maturity,Record at,fair value,Record at,fair value,Record at,Amortized cost,Equity Securities:Accounting by Category,CategoryValuationUnrealized HoldingInvest.Income,Method Gains and Losses Effects (I/S),20%,Cost None Dividends,Permanent impairment,50%,Consolidate -Proportionate,Subsidiarys income,(Parent company separate F/S),20%,Fair value Equity(B/S)Dividends and,Avail for sale G&L(sale),