Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

21   ASC 325 INVESTMENTS—OTHER

Perspective and Issues

Topics

Subtopics

Overview

Definitions of Terms

Concepts, Rules, and Examples

Cost Method Investment

Dividends

Impairment

Changes in accounting methods

Other Accounting Issues

Other sources

ASC 325-30, Investments in Insurance Contracts

Investments in Life Settlement Contracts

The investment method

The fair value method

Presentation in the statement of financial position

Examples of presentation alternatives in the statement of financial position

Income statement presentation

Examples of income statement presentation alternatives

Cash flow statement presentation

Disclosure of accounting policy

Disclosures when using the investment method

Disclosures when using the fair value method

ASC 325-40, Beneficial Interests in Securitized Financial Assets

Impairment and interest income on purchased and retained beneficial interests in securitized financial assets

PERSPECTIVE AND ISSUES

Topics

The Codification contains several Topics on the various forms of investments:

• ASC 320, Investments – Debt and Equity Securities
• ASC 323, Investments – Equity Method and Joint Venures
• ASC 325, Investments – Other.

Subtopics

ASC 325 contains four subtopics:

• ASC 325-10, Overall, which merely identifies the other three topics
• ASC 325-20, Cost Method Investments, which offers guidance on stocks of entities not accounted for under the fair value method (ASC 320) or the equity method (ASC 323)
• ASC 325-30, Investments in Insurance Contracts, which provides ...