After studying this chapter, you should be able to:
LO1 Demonstrate how to identify and account for investments classified for reporting purposes as held-to-maturity.
LO2 Demonstrate how to identify and account for investments classified for reporting purposes as trading securities.
LO3 Demonstrate how to identify and account for investments classified for reporting purposes as available-for-sale securities.
LO4 Explain what constitutes significant influence by the investor over the operating and financial policies of the investee.
LO5 Demonstrate how to identify and account for investments accounted for under the equity method.
LO6 Explain the adjustments made in the equity method when the fair value of the net assets underlying an investment exceeds their book value at acquisition.
LO7 Explain how electing the fair value option affects accounting for investments.
