A guide to accounting for investments, loans and other receivables

Dec 13, 2023
Financial institutions
Financial reporting Presentation & disclosures Audit Financial assets

RSM’s A guide to accounting for investments, loans and other receivables provides both detailed and practicable guidance for middle market companies in accounting for transactions involving debt and equity securities, loans and other receivables, including accounting for credit losses on such instruments.

The accounting for such instruments and transactions is among the most complex in the FASB’s Accounting Standards Codification (ASC). Adding to this complexity is the need to apply the new guidance on credit losses found in ASC 326, which is now effective for virtually all entities within its scope.  Our guide addresses these complexities by explaining the accounting for these transactions in plain English and illustrates many aspects of this accounting with detailed examples and illustrations.

The guide covers the accounting for equity securities (ASC 321), debt securities (ASC 320), loans and other receivables, including modifications and restructurings (ASC 310) and how to apply the credit loss standard (ASC 326) to each of these varieties of financial instruments.

The December 2023 edition of the guide has been substantially updated to incorporate recent FASB guidance and include more practical examples based on situations which engagement teams are likely to see in practice. A summary of the significant changes made in this edition can be found in Appendix C of the guide.

Technical accounting guides

We have prepared in-depth guides on several particularly complex and challenging accounting topics, with comprehensive discussion of the applicable U.S. GAAP and many examples.

Subscribe to Financial Reporting Insights

Stay informed with our biweekly resource for recent financial reporting developments, including AICPA, SEC, PCAOB matters and other finance and accounting compliance considerations.