Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Slides:



Advertisements
Similar presentations
MANAGEMENT DECISIONS AND FINANCIAL ACCOUNTING REPORTS
Advertisements

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Reporting and Interpreting Investments in Other Corporations Chapter 12.
Chapter Four Consolidated Financial Statements and Outside Ownership McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Appendix D Investments in Other Corporations © 2009 The McGraw-Hill Companies, Inc.
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Appendix D Investments in Other Corporations PowerPoint Authors:
13 Investments and Fair Value Accounting
Mergers, Acquisitions, and Other Inter- corporate Investments.
© Copyright D Hillman Investments in Stocks and Bonds.
© 2004 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter 12 Investments.
1 Investments in Debts and Equity Securities. 2  Determine why companies invest in other companies.  Understand the varying classifications associated.
E-1. E-2 REPORTING AND ANALYZING INVESTMENTS Financial Accounting, Sixth Edition D.
12-1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright.
Investments in Stocks and Bonds of Other Companies Chapter 23.
Investments Sid Glandon, DBA, CPA Assistant Professor of Accounting The University of Texas at El Paso.
4/20/2017 Chapter 12 Investments.
BMGT 220, Chapter 12 Discussion Kristian Sooklal (cell) | (text)
15 Investments and Fair Value Accounting
Investments and Fair Value Accounting 13.
Tools for Business Decision-Making Fourth Canadian Edition Financial Accounting: Prepared by: Peggy Coady Memorial University of Newfoundland & Catherine.
BUS 120: Financial Accounting Chapter 13: Investments
Accounting Principles, Ninth Edition
ACCOUNTING PRINCIPLES SIXTH CANADIAN EDITION Prepared by: Debbie Musil Kwantlen Polytechnic University Chapter 16 Investments.
Chapter 17: Investments Intermediate Accounting, 11th ed.
Reporting and Interpreting Investments in Other Corporations Chapter 12 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Spiceland | Thomas | Herrmann Financial Accounting Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
McGraw-Hill /Irwin© 2009 The McGraw-Hill Companies, Inc. INVESTMENTS Chapter 12.
John Wiley & Sons, Inc. © 2005 Chapter 17 Investments Prepared by Naomi Karolinski Monroe Community College and and Marianne Bradford Bryant College Accounting.
Chapter One The Equity Method of Accounting for Investments McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 10 Investments. Learning Objectives 1.Identify why companies invest in debt and equity securities and classify investments 2.Account for investments.
Investments and Fair Value Accounting 13.
McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2006 Investments and International Operations Chapter 15.
Financial Accounting John J. Wild Sixth Edition John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights.
Chapter One The Equity Method of Accounting for Investments Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Appendix D Investments McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc.
© The McGraw-Hill Companies, Inc., 2002 Slide 16-1 McGraw-Hill/Irwin 16 Long-Term Investments and International Transactions.
© McGraw-Hill Ryerson Limited, 2003 McGraw-Hill Ryerson Chapter 12 Reporting and Interpreting Investments in Other Companies.
Spiceland | Thomas | Herrmann Financial Accounting Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Spiceland | Thomas | Herrmann Financial Accounting Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Investments and International Operations Appendix B Copyright © 2007 Prentice-Hall. All rights reserved.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA APPENDIX.
Investments Group #4 Bajacan, Karla Mae Carlos, Juan Paolo Castro, Patrick Lu, Enrico Rafael.
MANAGEMENT DECISIONS AND FINANCIAL ACCOUNTING REPORTS Baginski & Hassell Electronic presentation adaptation by Dr. Barbara L. Hassell & Dr. Harold O. Wilson.
1 CHAPTER 23 INVESTMENTS IN STOCKS AND BONDS OF OTHER COMPANIES.
Mediavillo, Felix Orantia, Genesis Elegue, John 2BFM.
Chapter 17: Investments 1. 2 Investment in Marketable Equity Securities - Overview Equity investments represent ownership of another company’s outstanding.
Investments and Fair Value Accounting 13 Student Version.
Spiceland | Thomas | Herrmann Financial Accounting Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Investments Chapter 17 Accounting Principles, 7th Edition
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA APPENDIX.
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter One The Equity Method of Accounting for Investments McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Spiceland | Thomas | Herrmann Financial Accounting Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Financial Statement Analysis K.R. Subramanyam Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the.
C Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter Chapter 16-2 Chapter 16 Investments Accounting Principles, Ninth Edition.
Chapter 16-1 CHAPTER 16 INVESTMENTS Accounting Principles, Eighth Edition.
Chapter 13: Investments Fundamentals of Intermediate Accounting
Companies make investments for three reasons.
Investments in Other Corporations
Chapter 8: Investments in Equity Securities
Chapter 17: Investments Intermediate Accounting, 11th ed.
Chapter 12 Investments.
Chapter 18: Investments Intermediate Accounting, 10th Edition
Chapter 17: Investments Intermediate Accounting, 11th ed.
Investments and Fair Value Accounting
Presentation transcript:

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Spiceland | Thomas | Herrmann Financial Accounting Investments Appendix D

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives Explain why companies invest in other companies Account for investments in equity securities when the investor has insignificant influence Account for investments in equity securities when the investor has significant influence Account for investments in equity securities when the investor has controlling influence Account for investments in debt securities App D-2

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective 1 Explain why companies invest in other companies App D-3

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Part A Equity Investments App D-4

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Illustration D.2—Accounting for Equity Investments App D-5

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective 2 Account for investments in equity securities when the investor has insignificant influence App D-6

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Equity Investments with Insignificant Influence Ownership of less than 20% of the voting stock Use fair value method Classified as either: Trading securities: securities that the investor expects to sell in the near future Available-for-sale securities: securities held for reasons other than attempting to profit from trading in the near future App D-7

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Purchase Equity Investments & Receive Cash Dividends App D-8

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Sell Equity Investments App D-9

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Adjust to Fair Value: Trading Securities App D-10

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Adjust to Fair Value: Available-for- Sale Securities App D-11

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective 3 Account for investments in equity securities when the investor has significant influence App D-12

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Equity Investments with Significant Influence Investor owns between 20% and 50% of the common stock Use the equity method App D-13

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Purchase Equity Investments App D-14

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Recognize Equity Income App D-15

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Receive Cash Dividends App D-16

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective 4 Account for investments in equity securities when the investor has controlling influence App D-17

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Equity Investments with Controlling Influence More than 50% of the voting stock Use the consolidation method Parent company prepares consolidated financial statements App D-18

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Part B Debt Investments App D-19

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objective 5 Account for investments in debt securities App D-20

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Purchase Debt Investments App D-21

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Earn Interest Revenue App D-22

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Sell Debt Investments App D-23

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Adjust To Fair Value Debt investments are classified as: Held-to-maturity securities Trading securities Available-for-sale securities App D-24

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. End of Chapter Appendix D App D-25