AccountingBLOCK - Tax and Accounting Forums

Hi! May I request for your kind assistance re: the classification of Time Deposits maturing in 4 mos and Interest bearing Notes Receivable from a local bank maturing within 1 year. Is it Available for sale securities? Trading securities or Held to Maturity securities? Thank you so much in advance!

Time deposits and bank notes are not typically used for trading so I doubt you are trying to trade those. If you are not trying to trade those we can eliminate the Trading Category. The next decision is whether you INTEND to hold those until they mature or not. If you intend to hold them until they mature then they are "Held to Maturity". If not they are "Available for Sale."

Thank you ! But are Certificates of time deposit and PNs issued by local banks also considered debt securities? Are quoted prices issued by a local bank acceptable instead of quoted prices coming from Stock exchanges/stock market?

As per definition of HTM

- only debt securities can be classified as HTM
- must have a fixed maturity
- they are quoted in an active market
- holder has demonstrated a postive intention and ability to hold them to maturity.

many thanks!

As for debt securities - yes, these are debt. Certainly not equity securities! So look up any definition to prove this out.
As for quoted prices - can you post your reference for your citation so I can read it?
Thanks