Term
|
Definition
| Held-to-maturity investments are reported and amortized at cost. |
|
|
Term
| Securities available for sale Method |
|
Definition
| Securities available for sale investments are reported at fair value with unrealized gains and losses excluded form earnings and reported in shareholders equity. |
|
|
Term
| Trading securities Method |
|
Definition
| Trading security investments are reported at fair value with unrealized gains and losses included in earnings. |
|
|
Term
|
Definition
Is used when an investor owns more than 50% of the voting stock of the investee.
Combines the financial statements of the two companies as if they were a single entity. |
|
|
Term
|
Definition
Is used when an investor can have signifficant influence of a company, owning between 20% and 50% of the voting shares.
Adjusts cost to the subsequent growth of the investee. |
|
|
