Financial Accounting Standards Essays

Financial Accounting Standards Essays

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Accounting for financial instruments and the issues that go along with it have been an ongoing issue throughout the years for businesses. As a result the Financial Accounting Standards Board have handed down decisions regarding the valuation method that should be used. Whether these decisions are truly the best way to value financial instruments has been up for debate. The earliest decision came down in May of 1993 when the Financial Accounting Standards Board passed Statement of Financial Accounting Standards No. 115. According to the Financial Accounting Standards Board this statement addresses the accounting and reporting for investments in equity securities that have readily determinable fair values and for all investments in debt securities. These investments are classified in one of three different categories. (Financial Accounting Standards Board [FASB], n.d.) For debt securities that a company intends to hold until maturity are classified as “held to maturity” securities. For debt and equity securities that are purchased and then held for the purpose of them being sold in the...

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