In this video, learn how to identify the valuation issues associated with securities and derivatives. This includes how to best account for these.
- It is often the case that one company … will store its temporary excess cash … by investing in the stocks and bonds … of other companies. … And some companies invest in the stocks and bonds … of other companies as part of their business strategy, … seeking to earn returns through careful investing. … After making the investments, … the value of the investments will move … up and down daily as stock and bond prices fluctuate. … Now the important accounting question is this. … Should the investment security assets be reported … in the balance sheet at their original cost … or at their current market value? … Well in a break from accounting tradition, … almost all investment securities are reported … in the balance sheet at current market value, not cost. … For example, on December 31st, 2018, … Berkshire Hathaway, which is the large investment company … run by Warren Buffet, owned a portfolio of stocks … in other companies, including American Express, … Apple, Bank of America, Coca-Cola, and Wells Fargo. …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Kay Stice1h 46m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.