Investments in Stock
- Valuation and Reporting of Equity Securities
- As either Trading Securities (TS) or Available for Sale (AFS). Not Held to Maturity (HTM) as shares do not have a maturity date.
- Equity securities which have a fair value and no significant influence
- Use of the Cost Method.
- Adjust to fair value: Gain or Loss reported through the use of the valuation allowance (market adjustment) and the I/S (TS). AFS adjustment is to the shareowner equity section of the B/S not the current period I/S.