Debt Maturity Structure and Credit Quality Form

Instructions and help about Debt Maturity Structure And Credit Quality

in this video we're going to talk about how to do the accounting for held to maturity Securities so we have two broad types of Securities we have Equity Securities which are things like stock and then we have debt Securities which are things like bonds so Equity Securities are grouped into either trading Securities or available for sales Securities and debt Securities they can be trading Securities or available for sales Securities just like Equity Securities but we also have this third classification called held to maturity so we can't have an equity security that's held to maturity because if you buy stock in Microsoft there's no point where it's going to mature however with debt for example a bond there's a point where the bond matures so instead of classifying as trading or available for sale in which case the bonds would be held on the balance sheet at fair value you can have it in this held to maturity where you're going to have it on the balance sheet at what's called amortised