1. Research the following question: Here you should answer the question posed in Understanding the Issues, Chapter 18 #2. The FASB requires for-profit entities to classify their investments as trading, available-for-sale, or held-to-maturity. However, it does not require not-for-profit entities to do the same. What might be the reasoning for this difference in requirements? Which approach is more beneficial to the readers of the financial statements of a not-for-profit organization? Why? Research the FASB standards (Section 958) for information to answer this question. Write a minimum of two pages (double spaced), and provide citations from the FASB database.
2. Research the accounting issue and formalize your findings in a formal research memo. The formal memo should be in good form with proper grammar, conveying the results of your research. Students are welcome to discuss the case with each other; however, each student is responsible for writing his/her own research memo.

The FASB Codification User name is aaa64830; password is h5hCH4X.This is good through 8.31.2017.

The FASB requires for-profit entities to classify their investments as trading, available-for-sale, or held-to-maturity. However, it does not require not-for-profit entities to do the same. What might be the reasoning for this difference in requirements? Which approach is more beneficial to the readers of the financial statements of a not-for-profit organization? Why?