Essay
Identify the classifications for investments in securities. Briefly comment on the differences among the features of equities that are classified as held-for-trading, available-for-sale, those with significant influence, and those with control.
Accounting for investments in securities depends on some or all of the following:
1. purpose, e.g. trading or long-term investment, the company's intent to hold the security either short-term or long-term,
2. its contractual characteristics, e.g. debt or equity,
3. whether it is listed on an exchange,
4. the industry in which the reporting entity operates, and
5. the accounting policy choice of the reporting entity.
Correct Answer:
Verified
Correct Answer:
Verified
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