How does U.S. GAAP and IFRS require firms to classify marketable securities?
The provisions of U.S. GAAP and IFRS require firms to classify marketable securities into three categories:
1 . Debt securities held to maturity (U.S. GAAP) or held to maturity investments (IFRS) for which a firm has both the intent and the ability to hold to maturity—shown on the balance sheet at an amount based on acquisition cost, but subject to impairment.
2 . Debt and equity securities held as trading securities (U.S. GAAP) or as financial assets at fair value through profit or loss (IFRS)—shown on the balance sheet at fair value, with changes in fair value of securities held at the end of the accounting period reported each period in net income.
3 . Debt and equity securities held as securities available-for-sale (U.S GAAP) or as available-for-sale financial assets (IFRS)—shown on the balance sheet at fair value, with unrealized changes in fair value of securities held at the end of the accounting period included in other comprehensive income, and realized changes in fair value included in net income when a firm sells the securities.
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What decision would be made under minimax regret?
An investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic Condition Poor Average Good Excellent Investment (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100 300 -50 10 D 25 25 25 25
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Indicate whether the statement is true or false
When you connect simple conditions using the ____________________ operator, the compound condition will be true whenever any of the simple conditions are true.
Fill in the blank(s) with the appropriate word(s).