Investments: Debt Securities

Many companies choose to hold debt securities in their portfolio. Because of the prominence of debt securities across a wide variety of industries and portfolios, understanding the proper recognition and measurement in accordance with ASC 320 Investments - Debt Securities, as well as accounting for credit losses and impairment of debt securities in accordance with ASC 326 Financial Instruments - Credit Losses, is important! In this CPE-eligible eLearning course (1.5 CPE), we dive into the accounting for debt securities under U.S. GAAP, including the classification of debt securities as trading, available for sale, or held to maturity. We then walk through the initial recognition and subsequent measurement of debt securities based on their classification in accordance with ASC 320. You then learn about assessing impairment and recognizing credit losses on debt securities in accordance with ASC 326. This online course concludes with a review of the disclosure requirements for debt securities.

Topics covered in this debt securities CPE course include:

• Introduction to investments in debt securities

• Accounting for debt securities

• Classification of and accounting for debt securities

• Credit losses and impairment

• Disclosures

This is the first course in our 2-part accounting for investments training series.

 By the end of this course, you should be able to: 

• Distinguish between the three categories of debt securities and recognize the accounting requirements for each category under ASC 320
• Recall the accounting requirements for credit losses on held-to-maturity debt securities and impairment of available-for-sale debt securities 
• Recall the disclosure requirements for debt securities set out in ASC 320