Chapter 9 - problems Flashcards Preview

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Flashcards in Chapter 9 - problems Deck (4)
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1
Q

Summary

A
2
Q

FV-NI

A
  • is for trading purposes => it is considered short term => so no amortization (of a discount or a premium). The entru is blended together:
    dr. Cash
    cr. Investment income or loss
3
Q

FV-OCI

A
  • when investments are disposed, previously unrealized holding gains or losses need to be transferred out of OCI/AOCI
  • FC-OCI with recycling => they go into net income
  • FV-OCU without recycling => they go directly to RE
4
Q

Cost/amortized cost

A
  • the only method that amortized Discount/Premium