We have updated our Privacy Policy. By continuing to use this website, you are agreeing to the new Privacy Policy and any updated website Terms.
NOTICE regarding use of cookies: We have updated our Privacy Policy to reflect our use of cookies to collect and process data, or to enhance the user experience. By continuing to use this website, you agree to the placement of these cookies and to similar technologies as described in our Privacy Policy.
CONTACT US
HELP
FASB Home››
REFERENCE LIBRARY››
Superseded Standards
SUMMARY OF STATEMENT NO. 115
ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY SECURITIES (ISSUED 5/93)
Summary

This Statement addresses the accounting and reporting for investments in equity securities that have readily determinable fair values and for all investments in debt securities. Those investments are to be classified in three categories and accounted for as follows:
Debt securities that the enterprise has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost.
Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings.
Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as available-for-sale securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity.
This Statement does not apply to unsecuritized loans. However, after mortgage loans are converted to mortgage-backed securities, they are subject to its provisions. This Statement supersedes FASB Statement No. 12, Accounting for Certain Marketable Securities, and related Interpretations and amends FASB Statement No. 65, Accounting for Certain Mortgage Banking Activities, to eliminate mortgage-backed securities from its scope.
This Statement is effective for fiscal years beginning after December 15, 1993. It is to be initially applied as of the beginning of an enterprise's fiscal year and cannot be applied retroactively to prior years' financial statements. However, an enterprise may elect to initially apply this Statementas of the end of an earlier fiscal year for which annual financial statements have not previously been issued.

 
REFERENCE LIBRARY
Project Plans Archive
FASB Outlook
Presentations & Speeches
Archive
Meeting Minutes
Public Forums
Exposure Documents & Public Comment Documents
Other Comment Letters
Ballots
Ballots Archive
Additional Communications
Research Project Published Reports
Agenda Requests
Foundation Annual Reports
FASB Chair Quarterly Reports
Superseded Standards
Superseded AICPA Copyrighted Standards
Technical Inquiry Service
Public Reference Request Form
Comparability in International Accounting Standards
Strategic Plan
FASB Special Report: The Framework of Financial Accounting Concepts and Standards
FASB Staff Educational Papers
CAREERS
PRESS RELEASES
TERMS OF USE
ABOUT THIS SITE
CONTACT US
PRIVACY POLICY
COPYRIGHT AND PERMISSIONS
QUICKLINKS:
FASB RESPONSE TO COVID-19
ACADEMICS
EMERGING ISSUES TASK FORCE (EITF)
IMPLEMENTING NEW STANDARDS
INVESTORS
NOT-FOR-PROFITS
PRIVATE COMPANY COUNCIL (PCC)
REDUCING UNNECESSARY COMPLEXITY
TAXONOMY (XBRL)
STANDARDS >
PROJECTS >
MEETINGS >
REFERENCE LIBRARY >
NEWS & MEDIA >
ABOUT US >
STORE
FAFFASBGASBRSSYoutubeTwitterLinked InFacebook
HOMESTORESTANDARDSPROJECTSMEETINGSREFERENCE LIBRARYNEWS & MEDIAABOUT USSTAY CONNECTED
FAFFASBGASB