Question
1. Investment in debt securities are to be classified in one of three categories of investments. Define each category and describe the accounting treatment for
1. Investment in debt securities are to be classified in one of three categories of investments. Define each category and describe the accounting treatment for the recording of each type of investment over a period of time.
2. Available for Sale securities are treated differently than trading or held to maturity investments. How is this accounting treatment different and why does the FASB support this position?
3. Describe how the accounting treatment for held to maturities investments by a company is very similar to accounting for bond issuance as shown in Chapter 14. What are the differences?
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