Assignment: Codification Research Paper
Write a 700 to 1,050 words paper.
Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in the stock of one of its suppliers, Teton Co. Teton's shares trade on the over-the-counter market. The company would like you to conduct some research on the accounting for these investments.
Review the FASB Codification Student Instructions.
Provide Codification references for your responses below.
Incorporate your review of the FASB link to determine when the fair value of a security "readily determinable".
Because the Teton shares do not trade on one of the large stock markets, Cascade argues that the fair value of this investment is not readily available.
Describe how to account for an impairment of a security.
Determine how close to maturity Cascade could sell an investment and still classify it as held-to-maturity.
To avoid volatility in their financial statements due to fair value adjustments, Cascade debated whether the bond investment could be classified as held-to-maturity; Cascade is pretty sure it will hold the bonds for five years.
List disclosures that must be made for any sale or transfer from securities classified as held-to-maturity.
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.