Many companies invest in the stock or debt securities of other firms. They may do so for several reasons. Identity which activities, term, definition relates to accounting principles/rules associated with Accounting for Investments Recognition, Valuation, . Classification, Time left 0:53:37 Disclosure Investment can be measured at fair value under IFRS or net present value under GAAP. The exchange price associated with an actual or potential business transaction between market participants Choose... 0 The cash amounts of purchases and sales of investments appear in the investing activities section of the statement of cash flows. Valuation Like other purchase transactions Choose... Long-term investments must be evaluated annually for any impairment or decline in value that is more than temporary. If Choose... such an impairment exists, a loss on the investment must be recorded The cost, or purchase price, includes any commissions or fees. Choose... The value of investments on the balance sheet is adjusted to reflect subsequent conditions. These conditions may reflect changes in the market value or fair value of the investments, changes caused by the passage of time (as in amortization), or changes in the operations of the investee companies. Choose... There is either a transfer of funds or a definite obligation to pay Choose... Long-term investments are intended to be held for more than one year. Long-term investments are reported in the investments section of the balance sheet Choose... Investments in debt and equity securities are classified as either short-term or long-term Choose... Purchases of investments are recorded on the date on which they are made Choose... 0 Gains or losses an investments are also reported on the income statement Choose... Companies provide detailed information the manner in which they account for reporting in the notes to their financial statements Choose... Investments are valued according to the cost principle, cost at the time they are purchased Investments with a maturity of less than 90 days are classified as cash equivalents. Choose... Choose... 0 Increase in Asset as Short-term or Longterm Investment and a decrease in cash or Cash Outflow or increase in Liability Short-term investments, also called marketable securities, have a maturity of more than 90 days but are intended to be Choose... 0