according to the fasb, how should banks decide whether to classify a given debt investment as trading, afs or htm? do you think banks use significant judgment in this classification decision? explain why or why not.

Respuesta :

According to FASB, the bank's decision in the classification of a given debt as trading, AFS, or HTM is based on the intent of the company as to the length of time it will hold each investment.

The economic Accounting Requirements Board (FASB) is a personal standard-putting body whose primary purpose is to set up and improve typically prevalent Accounting ideas (GAAP) within the USA in the public's interest. The Securities and trade fee (SEC) is distinctive to the FASB as the business enterprise answerable for putting accounting standards for public organizations inside the US. The FASB changed the Yankee Institute of Certified Public Accountants (AICPA) Accounting principles Board (APB) on July 1, 1973. The FASB is run by means of the nonprofit economic Accounting foundation. FASB accounting requirements are generally as authoritative through many groups, including state boards of Accountancy and the Yankee Institute of CPAs (AICPA)

Learn more about FASB here

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