GAAP Accounting for Equity Securities with Readily Determinable Fair Value
Generally accepted accounting principles provide three different accounting methods for equity securities. This session focuses on equity securities where the investor has no significant influence, and those securities have readily determinable fair values, or simply put, the price of that security can be looked up in a public market. These investments are reported at fair value on the investor’s balance sheet as an asset, with dividend income and gains and losses recorded on the income statement.
This OnDemand Learning session provides examples of investment reporting required for the Insurance Company including the journal entries used to record the investment activity in the Insurance Company’s financial statements and key footnote disclosure requirements.
