Identify the Classifications for Investments in Securities

question 3

Essay

Identify the classifications for investments in securities. Briefly comment on the differences among the features of equities that are classified as held-for-trading, available-for-sale, those with significant influence, and those with control.
Accounting for investments in securities depends on some or all of the following:
1. purpose, e.g. trading or long-term investment, the company's intent to hold the security either short-term or long-term,
2. its contractual characteristics, e.g. debt or equity,
3. whether it is listed on an exchange,
4. the industry in which the reporting entity operates, and
5. the accounting policy choice of the reporting entity.

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Definitions:

Bipolar Disorder

A mental health condition characterized by extreme mood swings, including emotional highs (mania) and lows (depression).

Cognitive Triad

The three forms of negative thinking that theorist Aaron Beck theorizes lead people to feel depressed. The triad consists of a negative view of one’s experiences, oneself, and the future.

Aaron Beck

A psychiatrist and psychotherapist known for developing Cognitive Therapy, particularly its application for depression.

Depressed Person

A term for someone experiencing depression, a mental health condition characterized by persistent feelings of sadness and loss of interest in activities.