Investment Accounting

Pair each feature of investment accounting with your app. (letters can be applied to more than one number)

1. Investment in bonds until maturity (held-to-maturity)

2. Investment in bonds for short-term speculation (trading)

3. Investing in bonds with no defined intention (available-for-sale)

4. Investing in stocks with negligible influence

5. Investing in stocks with significant influence

6. Investment in controlled shares

1. They are valued using the equity method
2. They are valued at market value (fair value) at the end of the period
3. Require submission of consolidated financial statements
4. They are valued at their amortized cost
5. They are valued at their par value
6. They are not recognized as assets in the financial statements

Mark with an (X) in which part of the Statement of Position (Balance Sheet) must reflect an investment in bonds (debt investments) whose maturity is in 20 years and whose intention is to hold them until maturity (held-to-maturity):

a. Current Assets

b. Property, Plant and Equipment

c. Intangible Assets

d. Non-current assets

e. Current Debts

f. Long-Term Debt

g. Invested Capital

h. Accumulated Earnings