There are no prerequisites.

Course Description

Many organizations have an excess amount of cash for that they do not have an immediate need, so they invest it in a variety of debt and equity securities, or other forms of investment. How are they supposed to account for these investments and how should the investment process be managed? In Accounting for Investments, we define the types of investment classifications, how the accounting varies for each one, and how to deal with a number of investment transactions, including purchases, impairments, changes in value, and sales. The course also addresses the situations in which the equity method must be used, and demonstrates how the method functions. Further, the course covers investments from a control perspective, with an entire chapter describing a number of investment controls, as well as an investment procedure and several investment policies. In addition to the general discussion of investment accounting, there is a more specific examination of the accounting for investments in a nonprofit environment.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Jun 5, 2019
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Identify the characteristics of the various types of investments and the rules under which the investment classifications can be used.
  • Identify activities that will trigger the recognition of unrealized gains and losses.
  • Identify the rules and subsequent disclosures regarding the determination of other-than-temporary impairment.

Chapter 2

  • Identify the impact of various investee actions on an investor's equity method recordation of its investment in the investee.

Chapter 3

  • Cite the rules under which a nonprofit can record a purchased investment.

Chapter 4

  • Cite the systems and policies used to govern the administration of investments.
  • Identify the dangers posed by measuring certain investment outcomes.

Table of Contents


Chapter 1 – Accounting for Investments

Learning Objectives


Types of Investments

Types of Bonds

Types of Stock

Repurchase Agreements

Time Deposits

Certificates of Deposit

Bankers’ Acceptances

Commercial Paper

Money Market Funds

U.S. Government Debt Instruments

State and Local Government Debt

Investment Classifications

The Realized and Unrealized Gain or Loss

Other Comprehensive Income

Purchase and Sale of Investments

The Gain or Loss Calculation

Noncash Acquisition of Securities

Assignment of Costs to Securities

Lump-Sum Purchases

Restricted Stock

Conversion of Securities

Sale of Securities

Accounting for Dividends and Interest Income

Stock Dividends and Stock Splits

Noncash Dividends

Ongoing Accounting for Investments

Impact of Influence on Accounting Method

The Fair Value Option

Investment Transfers

The Effective Interest Method

Impairment of Investments

Presentation of Investments in the Financial Statements

Trading Securities

Held-to-Maturity Securities

Available-for-Sale Securities

Investment Disclosures

Available-for-Sale Disclosures

Held-to-Maturity Disclosures

General Investment Disclosures


Chapter 1 – Review Questions

Chapter 2 – The Equity Method

Learning Objectives


The Equity Method

Partnerships, Joint Ventures, and Limited Liability Entities

Investment Disclosures


Chapter 2 – Review Questions

Chapter 3 – Nonprofit Investment Accounting

Learning Objectives


Contributed Investments

Purchased Investments

Subsequent Measurement of Investments

Gains and Losses on Investment

The Equity Method of Accounting

Nonprofit Investment Policies

Investment Disclosures


Chapter 3 – Review Questions

Chapter 4 – Investment Controls and Procedures

Learning Objectives


The Investment Control Environment

Investment Policies

The Investment Quote Sheet

Funds Investment Procedure

Earnings on Invested Funds


Chapter 4 – Review Questions

Review Question Answers and Rationales



Qualified Assessment

Answer Sheet

Course Evaluation


Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

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