Assignment: Accounting for Investments Paper
FASB requires companies to assign their portfolio of investment securities into:
o Trading securities
o Securities available for sale
o Held-to-maturity securities
Write a response of no more than 1,500 words in which you perform the following:
o Define each of these categories of securities, and discuss the accounting treatment for each category.
o Discuss how companies are required to assign each category of securities into its current and noncurrent portions.
o 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."
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.