7 Feb 2018

Accounting standards update, ASU 2016-01, is effective forpublicly traded companies with a fiscal year beginning afterDecember 31, 2017. The accounting update now requires companies toclassify its equity investments at fair value, except thoseaccounted for using the Equity Method. In other words, equityinvestments are no longer classified as available-for-salesecurities. Based on your knowledge of the accounting for equityinvestments, what is the financial reporting implications for acompany that typically makes equity investments classified asavailable-for-sale? What impact might this reporting requirementhave?

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Jarrod Robel
Jarrod RobelLv2
10 Feb 2018

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