CPA Study cards F3 3 - 11

What are equity securities

What might equity securites be represented by 

What are the 3 catagories of securities

what are trading securities

What type of assets is a trading security

what are avaiable for sale securities

What type os asset is a avaiable for sale security

what are held to maturity securities

what are securitites that are bought and held princopally for the purpose of selling them int he near term

what are securiteis not meeting the definitions of the other two classifications.

what are investments in debt securites are callsified as held to maturity securites only if the corpation has the positive intent and ability to hold these securities to maturity

Under IFRS wht can marketable security investments be classifed as

trading and avaialbe for sale securites must be reported at ------------------------------

Fair value is the --------------------------------- of the security or what a willing buyer and seller would pay for and accpt to exchange the security

Unrealized holding gains and losses on trading securitites are included in ------------------------------ .  there fore the unrealized gain or  loss on trading securites is shown in the -----------------------------------

Unrealized holding ---------------------- on trading securitites are included in earnigns .  there fore the unrealized -------------------- on trading securites is shown in the income statement.

Unrealized holding gains and losses on ----------------------- are included in earnings .  there fore the unrealized loss on trading securites is shown in the income statement

Unrealized holding ---------------------------- on avaiable for sale securites are reported in other comprehensive income

Unrealized holding gains and losses on -------------------------------------- are reported in other comprehensive income

-------------------------- holding gains and losses on avaiable for sale securites are reported in other comprehensive income

Unrealized holding gains and losses on avaiable for sale securites are reported in ---------------------------------------

Under IFRS unrealized gians and losses on avaiable for sale securites are reported in other comprehensive income , except for ------------------------------------------ on avaiable for sale debt securites which are reported directly on the income statement. 

Under IFRS unrealized gians and losses on avaiable for sale securites are reported in other comprehensive income , except for foreign exchange gains and losses on avaiable for sale debt securites which are reported directly on the ----------------------------.

Under IFRS unrealized gians and losses on avaiable for sale securites are reported in --------------------------------- , except for foreign exchange gains and losses on avaiable for sale debt securites which are reported directly on the income statement.

Under IFRS unrealized gians and losses on avaiable for sale securites are reported in other comprehensive income , except for foreign exchange gains and losses on avaiable for sale --------------- securites which are reported directly on the income statement.

Under IFRS foreign exchange gains and losses on avaiable for sale ------- securites are incuded in other comprehensive income

Under IFRS foreign exchange gains and losses on avaiable for sale equity securites are incuded in ---------------------------------------------------------

Under IFRS foreign exchange gains and losses on -------------------------------------- securites are incuded in other comprehensive income

Realized ----------------------- are recognized when a security is sold and when an avaialbe for sale security is deemed to be impaired.  All relized ------------------- are reognized on the income statement

Realized gains or losses are recognized when a security is -------- and when an avaialbe for sale security is deemed to be -----------------.  All relized gains or losses are reognized on the income statement

Realized gains or losses are --------------------- when a security is sold and when an avaialbe for sale security is deemed to be impaired.  All relized gains or losses are reognized on the ------------------------------

Held to maturity securites are valued at -------------------------

------------------------- securities are valued at amortized cost

Fill in the blank

Security classifacation --- Trading

Balance sheet------
Reported-----------
Unrealized gain / loss--------
Cash Flow--------

Fill in the blank

Security classifacation -----Avaliable for sale

Balance Sheet------------
Reported--------------
Unrealized gain/loss------------
Cash Flow--------------

Fill in the blank

Security classifacation --------Held to maturity debt security

Balance Sheet-------------
Reported ----------------
Unrealized gain/loss-----------
Cash Flow----------------

The following discribes which kind of security

Balance sheet--------current
Reported-------------Fair Value
Unrealized gain / loss-------Income statement
Cash Flow-------------------Operating or Investing

The following discribes which kind of security

Balance Sheet--------Non-current
Reported--------------Fair Value
Unrealized gain/loss--------other operating income
Cash flow-----------investing

The following discribes which kind of security

Balance sheet-------Non current
Reported---------------Amortized
Unrealized gain/loss------------NONE
Cash Flow-----Investing

Any unrealized holding gain or loss on a security that is reclassifed from the trading catagory has the unrealized holding gain or loss at the date of transfer is already recognized in ----------------- and shall not be --------------------

Any unrealized holding gain or loss on a security that is reclassifed from the trading catagory has the --------------------------------------at the date of transfer is already recognized in earnings and shall not be reversed

Any unrealized holding gain or loss on a security that is reclassifed to the trading catagory the unrealized holding gain or loss at the date of transfer shall be recognized in earnings ----------------------------.

Any unrealized holding gain or loss on a security that is reclassifed to the trading catagory the -------------------------------------------- at the date of transfer shall be recognized in earnings immediately.

Any unrealized holding gain or loss on a security that is reclassifed from a debt security classified as held to maturity transferred to avaiable for sale  the unrealized gain or loss at the date of transfer shall be reported in ---------------------------------------------.

Any unrealized holding gain or loss on a security that is reclassifed from a debt security classified as held to maturity transferred to --------------------------  the unrealized gain or loss at the date of transfer shall be reported in other comprehensive income.

Under US GAAP if a decline in a security is fair value is other than tempory the cost basis of the individual security is written down to ----------------------- as the new cost basis and the amount of the write down is accounted for as a realized loss and included in earnings

Under US GAAP if a decline in a security is fair value is other than tempory the cost basis of the individual security is written down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss and included in -------------------

changes in -------------------are not recognized if the security is classified as held to maturity

changes in fair value are not recognized if the security is classified as ----------------------

if a secutity is classified as avaiable for sale a subsequent increase in fair value is included in ---------------------------------------------------------

if a secutity is classified as ---------------------------- a subsequent increase in fair value is included in other comprehensive income

decreases in fair value of anaivalble for sale securities if not other than tempory are also included in other comprehensive income and accounted for as an ---------------------------------------

decreases in --------------------- of anaivalble for sale securities if not other than tempory are also included in other comprehensive income and accounted for as an unrealized loss

decreases in fair value of anaivalble for sale securities if not other than tempory are also included in ------------------------------------------- and accounted for as an unrealized loss

a sale of a security from any catagory results in  a realized gain or loss and is reported on the --------------------------- for the period

a sale of a security from any catagory results in  a ---------------------------------------- and is reported on the income statemetn for the period

a sale of a security from any catagory results in  a realized gain or loss and is reported on the income statemetn for the ----------------------

consolidated fiancial statements ignore important legal relationships and emphasize economic substance over form.

consolidated fiancial statements ignore important legal relationships and emphasize ----------------------- over form.

consolidated financial statements are an ------------------------ but a legal fiction

consolidated financial statements are an economic truth but a ----------------------

----------------------------------statements are an economic truth but a legal fiction

----------------------------------------- statements are necessary for fair presentation

the -------------------------- is not a valid substitute for consolidation.

---------------------------- all majority owned subsidiaries to have one managemetn and one economic enitity.

consolidate all ---------------------------- subsidiaries to have one managemetn and one economic enitity.

----------------- consolidate when control is not with owners

Companies that have differant year ends ------------------- consolidated

consolidataton is a combination of the financial statemetns of -------------------- entities into a single set of financial statemetns representing a single economic unit.

consolidataton is a combination of the financial statemetns of two or more entities into a single set of ---------------------------------- representing a single economic unit

the investor accounts for the investment using the ---------------------------- if the invstor does not have the ability to exercise significant influance over the investee. ( less than 20%)

the investor accounts for the investment using the cost mehtod if the invstor does not have the ability to exercise significant influance over the investee. ( less than ----%)

the investor accounts for the investment using the cost mehtod if the invstor -------- have the ability to exercise significant influance over the investee. ( less than 20%)

the invstor accounts for the investment using the ----------------------------------- of accounting if the investor can exercise significant influance over the investee and holds 50% or less of the voting stock

the invstor accounts for the investment using the equity method of accounting if the investor can exercise significant influance over the investee and holds -----% or less of the voting stock

the invstor accounts for the investment using the equity method of accounting if the investor can --------------------------------------------------- over the investee and holds 50% or less of the voting stock

The investor should prepare ------------------------------------------------- with its investees when the investor has control (over 50% ownership) of the subsidiary.  internally the investor may use either the cost method or the equity mthod to account for its investments

The investor should prepare consolidated finacial staements with its investees when the investor has control (over ----% ownership) of the subsidiary.  internally the investor may use either the cost method or the equity mthod to account for its investments

The investor should prepare consolidated finacial staements with its investees when the investor has control (over 50% ownership) of the subsidiary.  internally the investor may use either the-----------or the ----------- to account for its investments