Chapter 18: Investments
After studying this chapter you should be able to:
Identify the three categories of debt securities and describe the accounting and reporting treatment for each category.
Identify the categories of equity securities and describe the accounting and reporting treatment for each category.
Explain the equity method of accounting and compare it to the fair value method for equity securities.
Describe the disclosure requirements for investments in debt and equity securities.
Discuss the accounting for impairments of debt and equity investments.
Describe the accounting for transfer of investment securities between categories.