Companies are required to assign each category of securities

Assignment Help Financial Accounting

Reference no: EM131211800

FASB ASC 320 requires companies to assign their portfolio of investment securities into

1. Trading securities

2. Securities available for sale

3. Held-to-maturity securities

Required:

a. De?ne each of these categories of securities and discuss the accounting treatment for each category.

b. Discuss how companies are required to assign each category of securities into its current and noncurrent portions.

c. Some individuals maintain that the only proper accounting treatment for all marketable securities is current value. Others maintain that this treat-ment might allow companies to “manage earnings.” Discuss the arguments for each position.

Reference no: EM131211800

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