Problem: Access the FASB Codification ad https://asc.fasb.org/home to prepare responses to the following exercises. Provide Codification references for your responses.
1. Access the glossary ("Master Glossary") to answer the following.
(a) What are trading securities?
(b) What is the definition of "holding gain or loss"?
(c) What is a cash flow hedge?
(d) What is a fair value hedge?
2. What guidance does the SEC give for disclosures regarding accounting policies used for derivatives?
3. When would an investor discontinue applying the equity method in an investment? Are there any exceptions to this rule?
4. For balance sheet purposes, can the fair value of a derivative in a loss position be netted aginst the fair value of a derivative in a gain position?