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15 Cards in this Set
- Front
- Back
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Held to Maturity Security |
Company has the positive intent and ability to hold to maturity |
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Trading securities |
bought and sold soon to generate revenue in price difference |
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Available for sale |
Debt security that is not Held to maturity or Trading Security |
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What is HTM reported at? |
Amortized cost = Facevalue - discount + premium |
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What is HTM usually classified as? |
Non-current asset |
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Where is interest in HTM recorded? |
Earnings |
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Describe interest components of a HTM Journal Entry |
Interest Revenue = CV * MR% Cash Received = Face Value * SR% Difference is discount or premium amort |
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Does HTM use fair value or amortized cost |
amortized cost |
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Do trading securities use fair value or amortized cost |
Fair value |
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Under trading securities, dividends or interest are reported under... |
Earnings |
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Under trading Securities, Fair Value adjustments are reported as... |
Unrealized gains or losses in earnings |
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Under Trading Securities, Investments are reported at... and classified as ... |
fair value and classified as current assets
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Steps when selling trading securities |
record realized gain or loss update fair value adjustment account reversed unrealised gains and losses from prior periods |
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AFS fair value adjustments are reported as |
unrealized gains or losses in the other comprehensive income section |
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When you sell AFS securites steps are |
record realized gain or loss in earnings update FVA account reverse unrealized gain or loss prom prior period in OCI |
