2007-02-22 22:57:02 · 1 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
A floating rate note (or any tradeable security) is classified not according to what type of security it is, but what managements' intentions are.
If it will be held to maturity, it is classified according to its term (e.g. if it matures in less than 12-months, then a current asset called "investments". Otherwise, longterm asset).
If the security is held for trading (and the company's regular business is trading securities), then it is classified as a current asset called "security held for trading".
IF the security is available for sale (and the company's reglar business is NOT trading securities), then it is available for sale in current assets called "securities available for sale" regardless of whether the term is longer or shorter than 12 months.
2007-02-26 12:15:12 · answer #1 · answered by csanda 6 · 0⤊ 0⤋