ACCT 530 Week 6 Signature Milestone Assignment

ACCT 530 Week 6 Case Study 6-10 Autonomy

ACCT530 Week 6 Discussion, Risks in Trends in Accountant/Audit

ACCT530 Week 6 Discussion, Flushing the Investment Portfolio

“Flushing” the investment portfolio is where companies purchase stocks to invest fund and or to gain strategic allegiance. According to GAAP any investments less than 20%  are passive, so the investing company does not need to shoe their net income on financial statements.  GAAP requires these type of investments be in two portfolio categories. 

1. “Trading” securities: Any changes during the fiscal year or gains/losses from sales are reporting in operating income. 
2. “Available for sale” securities: Any changes during the fiscal year are reported in “other comprehensive income components” at the bottom of the income statement.