FASB ASC 320 requires companies to assign their portfolio of investment securities into:
-Securities available for sale.
Write a response of no more than 1,500 words in which you answer the following:
- Define each of these categories of securities and discuss the accounting treatment for each category.
- Discuss how companies are required to assign each category of securities into its current and noncurrent portions.
- Discuss the arguments for each position. Some individuals maintain that the only proper accounting treatment for all marketable securities is current value.
- Others maintain that this treatment might allow companies to “manage earnings”.