Lecture Financial accounting (8/e): Appendix E - Robert Libby, Patricia A. Libby, Daniel G. Short-Tai Chinh - Ngan Hang

Appendix E: Reporting and interpreting investments in other corporations. This chapter includes contents: Passive investments in debt and equity securities, investments in stock for significant influence, investments in stock for control, types of investments and accounting methods, debt held to maturity: amortized cost method,... AppendixEReportingandInterpretingInvestmentsinothercorporationsPowerPoint Authors:Susan Coomer Galbreath, Ph.D., CPACharles W Caldwell, D.B.A., CMAJon A. Booker, Ph.D.

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Tải Lecture Financial accounting (8/e): Appendix E - R... (.pdf)

Appendix

E

Reporting

and

Interpreting

Investments

in

other

corporations

PowerPoint Authors:

Susan Coomer Galbreath, Ph.D., CPA

Charles W Caldwell, D.B.A., CMA

Jon A. Booker, Ph.D., CPA, CIA

Cynthia J. Rooney, Ph.D., CPA

McGraw­Hill/Irwin

Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved.

Passive

Investments

in

Debt

and

Equity

Securities

Passive

investments

are

made

to

earn

a

high

rate

of

return

on

funds

that

may

be

needed

for

future

purposes.

Investments

in

debt

securities

are

always

considered

passive

investments.

Equity security investments

are presumed passive if the

investing company owns less

than 20% of the outstanding

voting shares.

The investor is not

interested in controlling

or influencing the other

company.

E-2

Investments

in

Stock

for

Significant

Influence

Investments

made

with

the

intent

of

exerting

significant

influence

over

another

corporation.

The

ability

of

the

investing company to

have an important

Significant

Influence

impact on the

operating and

financial policies

of

20% - 50%

outstanding shares

another

company.

E-3