The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles 0/6 66 points awarded Required: 2. What is the specific citation that describes examples of circumstances under which an investment in debt is available to be sold and therefore should not be classified as held-to-maturity? Scored Requirement Subtopic Section Topic Property Plant and equipment Overall Disclosures Paragraph impairment or disposal of long Ilved Sassesis. Explanation The specific citation that specifies the circumstances and conditions under which it is appropriate to account for investments as held-to-maturity is FASB ACS 320-10-25 4. "Investments-Debt and Equity Securities. Overall-Recognition-Circumstances Not Consistent with Held-to-Maturity Classification FASB ACS 320-10-25 4 reads as follows: "An entity shall not classify a debt security as held-to-maturity of the entity has the intent to hold the security for only an indefinite period. Consequently, a debt security shall not for exemple, be classified as held to maturity if the entty anticipates that the security would be available to be sold in response to any of the following circumstances . Changes in market interest rates and related changes in the security prepayment risk b. Needs for luidity for example, due to the withdrawal of deposits, increased demand for loans, surrender of insurance policies, or payment of Insurance claims) c. Changes in the availability of and the yield on alternative Invest d. Changes in funding sources and terms e. Changes in foreign currency risk The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles 0/6 66 points awarded Required: 2. What is the specific citation that describes examples of circumstances under which an investment in debt is available to be sold and therefore should not be classified as held-to-maturity? Scored Requirement Subtopic Section Topic Property Plant and equipment Overall Disclosures Paragraph impairment or disposal of long Ilved Sassesis. Explanation The specific citation that specifies the circumstances and conditions under which it is appropriate to account for investments as held-to-maturity is FASB ACS 320-10-25 4. "Investments-Debt and Equity Securities. Overall-Recognition-Circumstances Not Consistent with Held-to-Maturity Classification FASB ACS 320-10-25 4 reads as follows: "An entity shall not classify a debt security as held-to-maturity of the entity has the intent to hold the security for only an indefinite period. Consequently, a debt security shall not for exemple, be classified as held to maturity if the entty anticipates that the security would be available to be sold in response to any of the following circumstances . Changes in market interest rates and related changes in the security prepayment risk b. Needs for luidity for example, due to the withdrawal of deposits, increased demand for loans, surrender of insurance policies, or payment of Insurance claims) c. Changes in the availability of and the yield on alternative Invest d. Changes in funding sources and terms e. Changes in foreign currency risk