Video: Financial Investments at Fair Value and Amortized Cost Overview and Objectives

In this lesson, navigate through the intricacies of reporting financial investments with Nick Palazzolo, CPA, as he breaks down the criteria for investments to be reported at fair value versus amortized cost. Delve into the details of calculating the carrying amount of such investments and constructing the appropriate journal entries. Nick makes sure to tackle the recognition of gains, losses, and investment income in net income or Other Comprehensive Income (OCI), always with an eye toward practical journal entry preparation. He wraps up by examining how to measure and report impairment losses on investments at fair value, simplifying complex concepts to help you quickly grasp and apply these principles for those easy, "free point" exam questions.