What is ASC topic 320?

What is ASC topic 320?

This Topic provides detailed guidance on the accounting and reporting of “investments in equity securities that have readily determinable fair values” and “all investments in debt securities.”

Which investment is subject to ASC 320 investments debt securities?

FASB ASC 320 – Investments – Debt and Equity Securities This category of debt and equity securities would include those long and short term investments such as marketable equity securities (stocks) and debt securities (bonds).

What is fas114?

114 (FAS 114), “Accounting by Creditors for Impairment of a Loan.” Under FAS 114, a loan is impaired when it is probable that the bank will be unable to collect all amounts due (including both interest and principal) according to the contractual terms of the loan agreement.

What is held to maturity?

Held-to-maturity (HTM) securities are purchased to be owned until maturity. For example, a company’s management might invest in a bond that they plan to hold to maturity. There are different accounting treatments for HTM securities compared to securities that are liquidated in the short term.

What are debt securities available for sale?

The value of securities held, for which the interest rate resets through an auction process, that are categorized neither as trading nor held-to-maturity, that failed to be liquidated through auction.

What is FAS 5 now called?

5: Accounting for Contingencies (FAS 5), the original FASB pronouncement, superseded by the substantively same FASB Accounting Standards Codification (ASC) subtopic 450 -20, Contingencies: Loss Contingencies, is a principal source of guidance on accounting for impairment in a loan portfolio under GAAP.

Is a bank loan a debt security?

Example of a Debt Security From Emma’s perspective, the mortgage represents a liability that she must service by making regular interest and principal payments. From the perspective of her bank, however, Emma’s mortgage loan is an asset, a debt security that entitles them to a stream of interest and principal payments.