3. Extinguishment of liabilities 3. 1 Bonds retired at maturity 3.2 Bonds retired prior to maturity 4. Bonds with equity characteristics Long- term notes payable 5. 1 Notes payable issued for cash 5. 2 Notes payable exchanged for cash and rights or privileges 5.3 Notes payable exchanged for property, goods, or services 5.4 Disclosure of long- term liabiliti Lesson 12 INVESTMENTS nvestments: classification and valuation Trading securities 2 Available-for-sale securities 1.3 Held-to-maturity debt securities 1. 4 Definitions nvestments in debt and equity trading securities Investments in available-for-sale debt and equity securities 3.1 Recording initial cost 3.2. Recording interest and dividend revenue 3.3 Recognition of unrealized holding gains and losses 3.4 Realized gains(losses) on sales of securities available-for-sale 4. Investments in held-to-maturity debt securities 4.1 Recording initial cost 4.2 Recognition and amortization of bond premiums and discounts 4.2.1 Methods 4.2.1.1 Effective-interest method 4.2.1.2 Straight-line method 4.2.2Pre Premium amortization reduces investment account 4.2.3 Discount amortization increases investment account 4.3 Amortization for bonds acquired between interest dates 4.4 Sale of investment in bonds before maturity Transfers and impairments 5.1 Transfers of investments between categories (at fair value 5.2 Impairments Disclosures 7. Financial statement classification 8. Equity method 8.1 Criteria for use ounting 8.3 Financial statement disclosures Lesson 13 CoNTRibUTED CAPITAL- 7 - 3. Extinguishment of liabilities 3.1 Bonds retired at maturity 3.2 Bonds retired prior to maturity 4. Bonds with equity characteristics 5. Long-term notes payable 5. 1 Notes payable issued for cash 5. 2 Notes payable exchanged for cash and rights or privileges 5.3 Notes payable exchanged for property, goods, or services 5.4 Disclosure of long-term liabilities Lesson 12 INVESTMENTS 1. Investments: classification and valuation 1.1 Trading securities 1.2 Available-for-sale securities 1.3 Held-to-maturity debt securities 1.4 Definitions 2. Investments in debt and equity trading securities 3. Investments in available-for-sale debt and equity securities 3.1 Recording initial cost 3.2. Recording interest and dividend revenue 3.3 Recognition of unrealized holding gains and losses 3.4 Realized gains (losses) on sales of securities available-for-sale 4. Investments in held-to-maturity debt securities 4.1 Recording initial cost 4.2 Recognition and amortization of bond premiums and discounts 4.2.1 Methods 4.2.1.1 Effective-interest method 4.2.1.2 Straight-line method 4.2.2 Premium amortization reduces investment account 4.2.3 Discount amortization increases investment account 4.3 Amortization for bonds acquired between interest dates 4.4 Sale of investment in bonds before maturity 5. Transfers and impairments 5.1 Transfers of investments between categories (at fair value) 5.2 Impairments 6. Disclosures 7. Financial statement classification 8. Equity method 8.1 Criteria for use 8.2 Accounting procedures 8.3 Financial statement disclosures Lesson 13 CONTRIBUTED CAPITAL 1. Introduction