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U.S. GAAP Codification Accounting Topics

Financial Reporting Guide

Principles of AccountingU.S. GAAP Financial Reporting Guide
Accounting by TopicAccounting Terms Dictionary

Section 4210: Investments in Debt and Equity Securities

[U.S. GAAP Codification Topic]
320 Investments - Debt and equity securities
320-10 Overall

825-20 Registration payment arrangements

[U.S. GAAP before the Codification]
SFAS 12, December 1975, Accounting for Certain Marketable Securities, Superseded by SFAS 115, in 1993
SFAS 65, September 1982, Accounting for Certain Mortgage Banking Activities
SFAS 114, May 1993, Accounting by Creditors for Impairment of a Loan, an amendment of FASB Statements No. 5 and 15
SFAS 115, May 1993, Accounting for Certain Investments in Debt and Equity Securities
FSP FAS 115-2, April 2009, Recognition and Presentation of Other-Than-Temporary Impairments
SFAS 119, October 1994, Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments, Superseded by SFAS 133 in 1998

1. Investments in Debt and Equity Securities
(1) Debt securities: represent creditor relationship
(2) Equity securities: represent ownership interest

2. Investments in Equity Securities
(1) more than 50% of voting power
--> prepare consolidated financial statements

(2) 20% or more, but no more than 50%
--> equity method accounting

(3) less than 20%
--> classified as either (a) or (b)
(a) trading securities
(b) available for sale securities

3. Investments in Debt Securities
(1) Held-to-maturity securities
--> intent and ability to hold until maturity

(2) No intent or ability to hold until maturity
--> classified as either (a) or (b)
(a) trading securities
(b) available for sale securities

4. Characteritics of Trading Securities
(1) "active and frequent" buying and selling
(2) profits on "short-term price differences"

5. Available for Sale (AFS) Securities
Securities not classified as either (a) or (b)
(a) Trading Securities
(b) Held-to Maturity (HTM) Securities

6. Measurement of Investments in Securities
(1) Trading Securities: Fair Value
(2) AFS Securities: Fair Value
(3) HTM Securities: Amortized Cost

7. Changes in Fair Value: Unrealized holding gains or losses
(1) Trading Securities: recognized in earnings
(2) AFS Securities: recognized in Other Comprehensive Income (OCI), not in earnings
(3) HTM Securities: not recognized

8. Impairment of AFS and HTM Securities
If the decline in fair value is "other than temporary"
--> recognize impairment losses in earnings

9. FASB Staff Position FAS 115-2, April 2009
Recognition and Presentation of Other-Than-Temporary Impairments

10. Other-Than-Temporary Impairments of Debt Securities
--> classified as "held-to-maturity" or "available-for-sale" securities
--> Apply FSP FAS 115-1 as revised by FSP FAS 115-2 in April 2009

11. Other-Than-Temporary Impairments of Equity Securities
--> classified as "available-for-sale" securities
--> Apply SAB Topic 5M as revised by SAB 111 in April 2009
--> SAB: SEC Staff Accounting Bulletin

12. For investments in securities classified as "held-to-maturity" or "available-for-sale"
--> If the decline in fair value below amortized cost
--> is other than temporary,
--> the investments are impaired

13. FSP FAS 115-1, November 2005
The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments
--> provides guidance to determine whether the decline in fair value
--> is other than temporary

14. FSP FAS 115-2 revised FSP FAS 115-1 in April 2009

Index of U.S. GAAP Financial Reporting Guide

U.S. GAAP by Codification Topics 
 105  GAAP Hierarchy 
 105  GAAP History 

 205  Presentation of Financial Statements 
 205-20 Discontinued Operations 
 210  Balance Sheet 
 210-20 Offsetting 
 220  Comprehensive Income 
 225  Income Statement 
 225-20 Extraordinary and Unusual Items 
 230  Statement of Cash Flows 
 250  Accounting Changes and Error Corrections 
 260  Earnings per Share 
 270  Interim Reporting
 310  Impairment of a Loan
 320  Investment Securities 
 320  Other-Than-Temporary Impairments, FSP FAS 115-2 
 320-10-05 Overview of Investments in Other Entities 
 320-10-35 Reclassification of Investments in Securities
 323-10 Equity Method Investments
 323-30 Investments in Partnerships and Joint Ventures 
 325-20 Cost Method Investments 
 330  Inventory

 340-20 Capitalized Advertising Costs 
 350-20 Goodwill 
 350-30 Intangibles Other than Goodwill 
 350-40 Internal-Use Software 
 350-50 Website Development Costs 
 360  Property, Plant and Equipment
 360-20 Real Estate Sales

 410  Asset Retirement and Environmental Obligations 
 420  Exit or Disposal Cost Obligations 
 450  Contingencies 
 450-20 Loss Contingencies 
 450-30 Gain Contingencies
 480  Redeemable Financial Instruments 

 505-20 Stock Dividends, Stock Splits 
 505-30 Treasury Stock 

 605  SEC Staff Accounting Bulletin, Topic 13 
 605-25 Revenue Recognition - Multiple Element Arrangements 
 715-30 Defined Benefit Plans - Pension
 718  Share-Based Payment 
 730  Research and Development 
 730-20 Research and Development Arrangements 

 805  Business Combinations  
 810  Consolidation 
 810  Noncontrolling Interests 
 810  Consolidation of Variable Interest Entities, SFAS 167 
 815  Derivatives and Hedging Overview 

 820  Fair Value Measurements  
 820  Fair value when the markets are not active, FSP FAS 157-4
 825  Fair Value Option 

 830  Foreign Currency Matters 
 830-20 Foreign Currency Transactions 
 830-30 Translation of Financial Statements 
 835  Interest 
 835-20 Capitalization of Interest 
 835-30 Imputation of Interest 

 840  Leases 
 840-20 Operating Leases 
 840-30 Capital Leases 
 840-40 Sale-Leaseback Transactions
 845  Nonmonetary Transactions 

 855  Subsequent Events 
 860-20 Sale of Financial Assets, SFAS 166 
 860-50 Servicing Assets and Liabilities, SFAS 156 

 985-20 Costs of software to be sold  

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