The IASB issued accounting guidance to clarify accounting methods and procedures with respect to debt and equity investments. An important part of the statement concerns the distinction between held-for-collection debt investments, trading debt and equity investments, and non-trading equity investments.Instructions(a) Why does a company maintain investment portfolios for these different types of investments?(b) What factors should be considered in determining whether investments should be classified as held-for-collection, trading, or non-trading? How do these factors affect the accounting treatment for unrealized losses?View Solution:
The IASB issued accounting guidance to clarify accounting method



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