Hey Friends. Today, I’ll post with regard to a specific account found on many balance sheets, especially on the balance sheets of financial companies. The account is Investment (in Marketable Securities).

Specifically, today’s post considers accounting for Investments in Debt Securities (e.g. Bonds). It seems a fitting topic, given the present highly-charged interest rate environment. Bond prices bear an inverse relationship to interest rates. As rates rise, bond values decrease. A company that has a large portfolio of investments in bonds has likely seen steep declines in the market value of its portfolio. […]