U.

S GAAP ACCOUNTING
FOR INVESTMENTS
 INVESTMENT IN EQUITY SECURITIES

o MORE THAN 50% OF VOTING POWER

o 20%-50% OF VOTING POWER
o LESS THAN 20%
TRADING SECURITIES
AVAILABLE FOR SALE SECURITIES
 INVESTMENTS IN DEBT SECURITIES

o HELD TO MATURITY
o NOT HELD TILL MATURITY
TRADING SECURITIES
AVAILABLE FOR SALE SECURITIES
 TRADING SECURITIES

• ACTIVE BUYING AND SELLING

• PROFIT ON SHORT TERM SELLING
 MEASUREMENT OF INVESTMENTS FOR SECURITIES

o TRADING SECURITIES: FAIR VALUE

o AFS SECURITIES: FAIR VALUE
o HTM SECURITIES: AMORTIZED VALUE

IN CASE THERE IS A DECLINE IN THE AFS AND HTM SECURITIES (NOT

TEMPORARY) THESE IMPAIRMENT LOSSES ARE RECOGNIZED IN PROFIT AND
LOSS A/C
 CHANGES IN FAIR VALUE

o TRADING SECURITIES: RECOGNISED IN EARNINGS

o AFS SECURITIES: OTHER COMPREHENSIVE INCOME
o HTM SECURITIES: NOT RECOGNISED
THANK YOU