Accounting for Investments: HTM, Trading, and AFS Securities

Accurately classifying and accounting for investments is essential for financial reporting, corporate analysis, and CPA exam readiness. This text-based course guides you through the core principles governing Held-to-Maturity (HTM), Trading Securities (TS), and Available-for-Sale (AFS) debt and equity portfolios. You will build a thorough understanding of balance sheet presentation, income statement impacts, and comprehensive income adjustments through step-by-step written walkthroughs. What you'll learn: - Understand core investment terminology and the classification criteria for debt and equity securities - Record precise journal entries for initial acquisition, interest accruals, fair value adjustments, and final disposal - Apply the amortized cost method and effective interest approach to Held-to-Maturity debt securities - Account for unrealized gains and losses across Trading portfolios and Available-for-Sale securities in Other Comprehensive Income (OCI) - Understand modern credit loss principles and impairment standards applied to debt investments - Practice working through simulation-style investment accounting problems and balance sheet reconciliations The course begins with foundational definitions and accounting frameworks before progressing to detailed transaction mechanics and practical case studies. It is ideal for accounting students, CPA candidates, and finance professionals seeking a clear, beginner-friendly guide with no advanced prerequisites required. Start reading today to master investment accounting fundamentals.