Which investments in debt securities and equity securities with no significant influence must be tested for impairment?

Question

Quizplus · Accepted Answer

AFS (Available-for-Sale) and HTM (Held-to-Maturity) debt securities must be tested for impairment. Trading securities are valued at fair value with changes recognized in earnings, so impairment testing is not applicable in the same way. Equity securities are measured at fair value with changes in fair value recognized in net income, thus not requiring impairment testing in the traditional sense.

Which Investments in Debt Securities and Equity Securities with No