Hello Farhat.. Many thanks for such a wonderful explanation. At 13:22 Amortized cost assumed to be reported at 91,500 while it is an AFS investment that should be reported at the original FV cost.
I am a bit confused at 8:49 why the carrying value for calculating the unrealized gain/loss for December 31, 2011 is $106,732 and not $105,241. Because I thought the $106,732 would be the carrying value for December 31, 2010 not for December 31, 2011. Can you explain this please if you get the chance, thank you!
Why is’t at the time of sale of the debt security afs - you didn’t reverse its unrealized loss oci and fv adjustment at the time of sale? Also you didn’t consider the CECL approach for the loss?
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Hello Farhat..
Many thanks for such a wonderful explanation.
At 13:22 Amortized cost assumed to be reported at 91,500 while it is an AFS investment that should be reported at the original FV cost.
Thank you sir, great explanation. That help me in my courses a lot.
Glad to hear that! Thank you and please visit the website for more farhatlectures.com/
Great explanation
Thank you for the great explanations :)
My pleasure! Thank you and please visit the website for more farhatlectures.com/
@@AccountingLectures definitely. I am preparing for CMA. Your videos help me a lot.
I am a bit confused at 8:49 why the carrying value for calculating the unrealized gain/loss for December 31, 2011 is $106,732 and not $105,241. Because I thought the $106,732 would be the carrying value for December 31, 2010 not for December 31, 2011. Can you explain this please if you get the chance, thank you!
What you have said is not correct. The bond book value on 12/31/2011 was $106,732.
Why is’t at the time of sale of the debt security afs - you didn’t reverse its unrealized loss oci and fv adjustment at the time of sale? Also you didn’t consider the CECL approach for the loss?
I will have a separate recording for reversing. Also, I will cover CECL separately.
Why are we doing Amortization even for Available for Sale Bond?
I find it interesting that u use 6/12 to represent half. Most would just use 1/2 but if was we want to be creative we could even chose 7/14 or 14/28
To represent half of the year: 6 out of 12 month. farhatlectures.com/