Investments in Debt Securities and Bonds

Question 1

Held to maturity

Trading

Available for Sale

Answer 1

Debt securities the reporting entity has the positive intent and ability to hold to maturity
Debt securities intended to be sold in the near term
Debt securities not classified as held to maturity or trading

Question 2

Held to maturity debt securities are measured at?

Answer 2

amortized cost

Question 3

if held to maturity is sold prior to maturity it can still be deemed as held to security if?

Answer 3

near enough to maturity date that interest rate risk does not have significant effect on FV
Sale is after collection of 85% or more of principal

Question 4

Trading securities are measured at?

Answer 4

initially recorded at cost
remeasured at FV at each balance sheet date

Question 5

Available for sale securities are measured at?

Answer 5

initially recorded at cost
remeasured at FV at each balance sheet date

Question 6

Unrealized holding gains and losses from available for sale securities are reported in?

Answer 6

OCI