Acc 300 Week 5 Essay

2166 Words Sep 24th, 2015 9 Pages
Learning Team A
Global Business Financial Environment
Brandy Havens

Alesia Batiste
GM Motors uses SEC filings (US Securities and Exchange Commissions). Available-for-sale securities are one type of investment a company can make. Available-for-sale securities are any security not classified as a trading security or held to maturity security. These can either be debt or equity securities, however, the accounting is the same for each. An accountant must properly account and report these securities on the company's financial statements. Accountants revalue available-for-sale securities each year and have to report unrealized gains or losses. These unrealized gains or losses are reported as other comprehensive income. Plan on
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Determine your ownership in each company you've invested in: Look at your number of shares and determine all outstanding shares. In most cases, you'll own less than 20 percent of the company in which you're investing. In this instance, use the "cost method" to report investments: List the fair market value of your holding as "equity investments" on the balance sheet under "long-term assets." If you plan to sell the securities in less than one year, list your holding under "short-term assets." All mutual fund shares should be listed as investments using the rules for the cost method. Report the investment through the "equity method" if you own more than 20 percent of the company and control up to 50 percent of it. In this method, your company's portion of earnings in the investment company flows through to your investment line on the balance sheet; the amount of your investment increases by your share of dividends or profits. Consolidate the target company's balance sheet and income statement into your existing statement if you own more than 50 percent of the investment company.
Joshua Farrar General Motors would invest in stocks and securities to increase its standing in the global marketplace. There are many factors which could come into play in determining if an organization should invest in stocks of other organizations. One key factor would be the ability of General Motors to invest in companies

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