Page 46 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five

Chapter teaching guide
Here are the primary points to consider on this chapter:

1. Types of investments
FOR ONLINE READING ONLY

(a) Equity securities: Explain investments in stocks, including
common and preferred shares.

(b) Debt securities: Cover investments in bonds, including
government, corporate, and municipal bonds.

(c) Derivatives: Introduce options, futures, and other derivative

instruments.

2. Investment classification

(a) Trading securities: Discuss investments bought and held
primarily for sale in the near term.

(b) Available-for-sale securities: Explain investments not
classified as trading or held-to-maturity, including their
accounting treatment.

(c) Held-to-maturity securities: Cover investments in debt

securities that the company has the positive intent and ability
to hold to maturity.

3. Accounting methods

(a) Fair value method: Teach how investments classified as
trading or available-for-sale are reported at fair value.

Teacher’s Guide Form Five
32

23/06/2024 17:45
ACCOUNTANCY_TG_2024_FINAL DUMMY.indd 32
ACCOUNTANCY_TG_2024_FINAL DUMMY.indd 32 23/06/2024 17:45