Contents
Chapter 1: Financial Instruments
Accounting Standards for Financial Instruments
Definition of Financial Instruments
Categories of Financial Instruments
Fair Value Measurement Concepts
Recognition and Derecognition of Financial Instruments
Difference between Investment and Speculation
Two Major Standards: U.S. GAAP and IFRS
Chapter 2: Accounting for Equity Investments: Trading
Accounting Standards for Equity Investments
Definition of Equity Securities
Passive Investments: Less than 20 Percent
Significant Influence: 20–50 Percent
Controlling Interest—More than 50 Percent
Exchange-Traded Securities versus Over-the-counter Securities
The Trade Life Cycle for Equity Trading Securities
FX Revaluation and FX Translation Process
Trade Date Accounting versus Settlement Date Accounting
Distinction between Capital Gains and Currency Gains
Chapter 3: Accounting for Equity Investments: Available-for-Sale
Accounting Standards for Equity Investments: Available-for-sale
The Trade Life Cycle for Available-for-sale Equity
FX Translation on AFS Securities
Chapter 4: Transfer of Categories
Presentation in Income Statement