(BQ) Part 2 book "Intermediate accounting" has contents: Current liabilities and contingencies, accounting for income taxes, pensions and other postretirement benefits, shareholders’ equity, the statement of cash flows revisited, accounting changes and error corrections, share based compensation and earnings per share,.and other conents. | Find more at Find more at CHAPTER 12 Investments OVERVIEW In this chapter you will learn about various approaches used to account for investments that companies make in the debt and equity of other companies. An investing company always has the option to account for these investments at fair value, with changes in fair values reported on the income statement. However, depending on the nature of an investment, investors can use alternative accounting approaches that ignore most fair value changes (., held-to-maturity investments) or that include fair value changes only in other comprehensive income (., available-for-sale investments). And, when an equity investor can significantly influence an investee but does not control it, the investor can use the equity method of accounting, which ignores fair value changes but includes the investee’s income when reporting the investor’s income. In appendices to this chapter, you will learn about other types of investments, and also about how to deal with other-than-temporarily impairments. Where We’re Headed boxes in the chapter describe ongoing efforts by the FASB and IASB to improve accounting standards with respect to investments. LEARNING OBJECTIVES After studying this chapter, you should be able to: ● LO12–1 Demonstrate how to identify and account for investments classified for reporting purposes as held-to-maturity. (p. 658) ● LO12–2 Demonstrate how to identify and account for investments classified for reporting purposes as trading securities. (p. 661) ● LO12–3 Demonstrate how to identify and account for investments classified for reporting purposes as available-for-sale securities. (p. 665) ● LO12–4 Explain what constitutes significant influence by the investor over the operating and financial policies of the investee. (p. 682) ● LO12–5 Demonstrate how to account for investments accounted for under the equity method. (p. 682) ● LO12–6 Explain
