Please note the following requirement for assignment:
Make sure you use Word document (and not pdf) and also name/save your file as
Week 3-Your first name-Your last name
This is an APA paper so you must include a title page/cover sheet and a reference page.
I insist all paper to have headings. You can use the requirements given to you for this assignment as your heading. Follow this same instruction in the following weeks.
FASB ASC 320 requires companies to assign their portfolio of investment securities into:
- Trading securities
- Securities available for sale
- Held-to-maturity securities
Write a response of no more than 1,500 words in which you perform the following:
- Define each of these categories of securities and discuss the accounting treatment for each category.
- Discuss how companies are required to assign each category of securities into its current and noncurrent portions.
- Discuss the arguments for each position. Some individuals maintain that the only proper accounting treatment for all marketable securities is current value. Others maintain that this treatment might allow companies to “manage earnings.”