Wiley GAAP: Financial Statement Disclosure Manual

18ASC 321 INVESTMENTS—EQUITY SECURITIES

1. Authoritative Literature
   1. Subtopic
   2. Scope and Scope Exceptions
      1. Scope—Entities
      2. Scope—Instruments
   3. Initial Measurement—Investments That No Longer Qualify for the Equity Method
   4. Subsequent Measurement
      1. Equity Securities with Readily Determinable Fair Value
      2. Equity Securities without Readily Determinable Fair Values—ASC 820‐20 Practical Expedient
      3. Equity Securities without Readily Determinable Fair Values—ASC 321 Measurement Alternative
      4. Changes in Measurement Approach
      5. Impairment Model for Equity Securities without Readily Determinable Fair Values
      6. Dividend Income
2. Presentation and Disclosure Requirements
   1. Presentation
      1. Statement of Financial Position
      2. Cash Flows
   2. Disclosures
3. Presentation and Disclosure Examples
   1. Example 18.1: Accounting Policy—Investments
   2. Example 18.2: Recent Pronouncements
   3. Example 18.3: Gains and Losses Recognized on Equity Securities
   4. Example 18.4: Equity Securities—Upward and Downward Adjustments

AUTHORITATIVE LITERATURE

An equity security represents:

• An ownership interest in an entity. This may take the form of common, preferred, or other capital stock.
• The right to acquire an ownership interest, for instance, warrants, rights, and call options.
• The right to dispose of an ownership interest at fixed or determinable prices. This includes put options and forward sale contracts.

  (ASC 321‐10‐20‐20)

Subtopic

ASC 321, Investments—Equity Securities, contains one Subtopic:

• ASC 321‐10, Overall, which provides accounting ...