You are the Treasurer for the Winter Corporation. Winter Corporation is planning to buy Debt Investments. In addition, due to COVID-19, the political climate, and inflation, the fair values of these debts investments change a lot from day-to-day.

Given the marked volatility of the Debt Investments fair values, what is the best classification for these Debt Investments when they are purchased by the corporation? And why?

Please note that the Chief Financial Officer (CFO) of the Corporation strongly believe that the Debt Investments should be classify as Trading Securities.

Requirements:

1. Post an original response to the situation above as to whether you agree or disagree with the position of the CFO to classify the Debt Investments as Trading Securities. You need to explain in detail, give examples if needed, to justify your agreement or disagreement. Once you post your response, you will be able to see your classmates responses. (12 Points)