ASSIGNMENT CLASSIFICATION TABLE BY TOPIC Topics Questions Exercises Exercises Problems a Held to maturity 1 3 2 3 5 1 7 1 Debt securities b Trading Concepts for Analysis 4 7 4 1 4 c Available for sale 1 2 3 4 7 1 4 2 Bond amortization 8 9 1 2 3 3 4 5 1 2 3 3 Equity securities a Available for sale 5 8 CHAPTER 17 Investments Brief 4 2 10 1 4 1 6 7 9 1 2 3 13 4 5 7 8 10 13 21 4 6 7 8 10 21 4 7 8 9 10 11 21 1 12 16 7 10 11 15 21 6 7 8 10 14 15 21 16 17 18 19 20 24 23 6 8 9 11 12 16 19 20 5 6 8 9 10 11 12 6 7 14 15 12 13 16 17 10 8 9 6 8 8 10 12 5 8 9 10 11 12 4 7 1 2 3 1 3 5 6 3 1 3 7 6 Fair value option 25 26 27 19 20 21 7 Impairments 10 18 8 Transfers between categories 9 Derivatives 28 29 30 31 32 33 34 35 22 23 24 25 26 27 13 14 15 16 17 18 10 Variable Interest Entities 36 37 This material is dealt with in an Appendix to the chapter Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only 17 1 b Trading c Equity method 4 Comprehensive income 22 5 Disclosures of investments 21 ASSIGNMENT CLASSIFICATION TABLE BY LEARNING OBJECTIVE Learning Objectives Exercises Problems 1 Identify the three categories of debt securities and describe the accounting and reporting treatment for each category Brief Exercises 1 2 Understand the procedures for discount and premium amortization on bond investments 1 2 3 4 2 3 4 5 21 1 2 3 4 7 3 Identify the categories of equity securities and describe the accounting and reporting treatment for each category 5 6 8 4 Explain the equity method of accounting and compare it to the fair value method for equity securities 7 1 6 7 8 9 11 12 14 15 16 19 20 21 3 5 6 8 9 10 11 12 12 13 16 17 8 5 Describe the accounting for the fair value 19 20 21 8 9 10 12 option 6 Discuss the accounting for impairments 10 of debt and equity investments 7 Explain why companies report reclassification 9 adjustments 18 10 8 Describe the accounting for transfer of investment securities between categories 9 Explain who uses derivatives and why 10 Understand the basic guidelines for accounting for derivatives 11 Describe the accounting for derivative 22 26 13 14 15 financial instruments 12 Explain how to account for a fair value hedge 13 Explain how to account for a cash flow hedge 23 25 24 27 16 18 17 17 2 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only ASSIGNMENT CHARACTERISTICS TABLE Item Description Level of Difficulty Time minutes E17 1 E17 2 E17 3 E17 4 E17 5 E17 6 E17 7 E17 8 E17 9 E17 10 E17 11 E17 12 E17 13 E17 14 E17 15 E17 16 E17 17 E17 18 E17 19 E17 20 E17 21 E17 22 E17 23 E17 24 E17 25 E17 26 E17 27 P17 1 P17 2 P17 3 P17 4 P17 5 P17 6 P17 7 P17 8 P17 9 Investment classifications Entries for held to maturity securities Entries for held to maturity securities Entries for available for sale securities Effective interest versus straight line bond amortization Entries for available for sale and trading securities Trading securities entries Available for sale securities entries and reporting Available for sale securities entries and financial statement presentation Comprehensive income disclosure Equity securities entries Journal entries for fair value and equity methods Equity method Equity investment trading Equity investments trading Fair value and equity method compared Equity method Impairment of debt securities Fair Value measurement Fair Value measurement Fair value option Derivative transaction Fair value hedge Cash flow hedge Fair value hedge Call option Cash flow hedge Simple Simple Simple Simple Simple Simple Simple Simple Simple Moderate Simple Simple Moderate Moderate Moderate Simple Simple Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate Debt securities Available for sale debt securities Available for sale investments Available for sale debt securities Equity securities entries and disclosures Trading and available for sale securities entries Available for sale and held to maturity debt securities entries Moderate Moderate Fair value and equity methods Moderate Financial statement presentation of available for sale investments Moderate Moderate Moderate Moderate Moderate Simple 5 10 10 15 15 20 10 15 20 30 10 15 10 15 5 10 10 15 20 25 20 25 15 20 10 15 10 15 15 20 15 20 10 15 15 20 15 20 15 20 15 20 15 20 20 25 20 25 15 20 20 25 25 30 30 40 30 40 25 30 25 35 25 35 25 35 25 35 20 30 20 30 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only 17 3 ASSIGNMENT CHARACTERISTICS TABLE Continued Item P17 10 P17 11 P17 12 P17 13 P17 14 P17 15 P17 16 P17 17 P17 18 CA17 1 CA17 2 CA17 3 CA17 4 CA17 5 CA17 6 CA17 7 Description Gain on sale of securities and comprehensive income Equity investments available for sale Available for sale securities statement presentation Derivative financial instrument Derivative financial instrument Free standing derivative Fair value hedge interest rate swap Cash flow hedge Fair value hedge Issues raised about investment securities Equity securities Financial statement effect of equity securities Equity securities Investment accounted for under the equity method Equity investment Fair value ethics Level of Difficulty Moderate Complex Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate Simple Moderate Simple Moderate Moderate Time minutes 20 30 35 45 20 30 20 25 20 25 20 25 30 40 25 35 25 35 25 30 25 30 20 30 20 25 15 25 25 35 25 35 17 4 Copyright 2011 John Wiley Sons Inc Kieso Intermediate Accounting 14 e Solutions Manual For Instructor Use Only SOLUTIONS TO CODIFICATION EXERCISES CE17 1 Master Glossary a b c d n CE17 2 Trading securities are securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time Trading generally reflects active and frequent buying and selling and trading securities are generally used with the objective of generating profits on short term differences in price A holding gain or loss is the net change in fair value of a security The holding gain or loss does not include dividend or interest income recognized but not yet received or write downs for other than temporary impairment A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or of a …
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