Course Description

An in depth look into accounting for debt and equity securities focusing on balance sheet, income statement and cash flow statement effects. Accounting for investments in debt securities covers held-to-maturity, trading and available-for-sale classifications with fully explained transactions and practice exercises and problem with detailed solutions. Equity investment accounting focuses on less than 50% ownership and the cost, market value and equity method accounting procedures.

Broderick Associates

Chris Broderick

CHRIS BRODERICK, as the primary principal of Broderick Associates, Chris Broderick translates his experience as a financial analyst to the teaching of accounting and financial statement analysis. Chris is a second-generation instructor of this family-run enterprise beginning his teaching in 1995 in association with his father. Since 1986 as a analyst with Chase Manhattan Bank, Chris has a broad expertise in international credit analysis traveling throughout the globe from his base in the New York and London offices. Later in 1989 he began training within Chase on a worldwide platform. Since joining Broderick Associates, he has trained employees with HSBC, JP Morgan Chase, TD Bank among others; both locally and globally. Throughout his career, he has also been aligned with various colleges and universities.

Course curriculum

  • 1

    Introduction, Course Objectives, Prerequisite Knowledge Required, Contents

    • Course Objectives

    • Prerequisite Knowledge Required

    • Course Contents
  • 2

    Section 1 Introduction to Intercompany Investments

    • Introduction to Intercompany Investments
  • 3

    Section 2 Accounting for Investments in Debt Securities

    • Accounting for Investments in Debt Securities

    • Exercise 1

    • Solution: Exercise 1

    • Held-to-Maturity Securities

    • Exercise 2

    • Solution: Exercise 2

    • Trading Securities

    • Exercise 3

    • Solution: Exercise 3

    • Available-for-Sale Securities

    • Comparison: Trading Securities vs Available-for-Sale Securities

    • Exercise 4

    • Solution: Exercise 4

    • Impairment of Investments

    • The Fair Value Option

    • Comparison: US GAAP vs IFRS
  • 4

    Section 3: Accounting for Investments in Equity Securities

    • Investments in Equity Securities

    • Accounting at Acquisition

    • Accounting Subsequent to Acquisition

    • Subsequent to Acquisition: Cost and Market Value Methods

    • Exercise 5

    • Solution: Exercise 5

    • Taxes on Investment Income

    • Equity Method Accounting

    • Example: Equity Method Accounting

    • Significant Influence

    • Exercise 6

    • Solution: Exercise 6

    • Comparison: US GAAP vs IFRS
  • 5

    Section 4: Practice Problems

    • Problem 1

    • Solution: Problem 1

    • Problem 2

    • Solution: Problem 2

    • Problem 3

    • Solution: Problem 3

    • Problem 4

    • Solution: Problem 4