Wiley GAAP 2018, 16th Edition

21ASC 321 Investments—Equity Securities

1. Perspective and Issue
   1. Technical Alert
      1. Scope
      2. Effective date
   2. Investment Topics
   3. Subtopics
   4. Scope and Scope Exceptions
      1. In scope
      2. Scope exceptions
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Investments That No Longer Qualifies for Equity Method
   2. Measurement
      1. Equities with Readily Determinable Fair Value
      2. Equity Investments without Readily Determinable Fair Values
   3. Impairment
      1. Impairment Model for Equity Investments without Readily Determinable Fair Values
   4. Dividend Income
   5. Presentation and Disclosure
   6. Other Sources

Perspective and Issues

Technical Alert

In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU is the result of the FASB's project on accounting for financial instruments. The goal of the project is to improve the usefulness of financial instruments reporting for decision makers. Simplification is expected to be an outcome of the project. This ASU is the first one issued as part of the financial instruments project. New impairment guidance is expected in 2016 as is an exposure draft on hedging.

The ASU affects guidance on:

• Equity investments that are not consolidated or accounted for under the equity method,
• Financial liabilities under the fair value option, and
• Presentation and disclosure requirements for financial instruments.

For equity investments without readily determinable fair value, ...