Video: Debt Investment Categories

In this lesson, unravel the complexities of categorizing debt investments with Nick Palazzolo, CPA, who breaks down the critical segments of trading, available-for-sale, and held-to-maturity securities. Nick demystifies the valuation and reporting procedures for each category, particularly highlighting the distinctions between the recognition of unrealized gains and losses in net income versus other comprehensive income (OCI). Discover the nuances of how these categories affect financial statements and their implications on cash flow statements. Furthermore, Nick explains the procedures and accounting implications for transferring debt securities between categories, emphasizing the memorization of these concepts to secure those crucial exam points.