According to AC Topic 320, 'Investments - Debt and Equity Securities', all of the following changes in circumstances may cause an entity to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future, EXCEPT for:O a. Evidence of a significant deterioration in the issuer's creditworthinessO b. Changes in market interest rates and related changes in the security's prepayment riskOc. A change in tax law that eliminates or reduces the tax-exempt status of interest on the debt securityO d. A major business combination or major disposition that necessitates the sale or transfer of held-to-maturity securities to maintain the entity's existing interest rate risk position or credit risk policy According to AC Topic 320, 'Investments - Debt and Equity Securities', all of the followingchanges in circumstances may cause an entity to change its intent to hold a certain securityto maturity without calling into question its intent to hold other debt securities to maturityin the future, EXCEPT for:Evidence of a significant deterioration in the issuer's creditworthinessO b. Changes in market interest rates and related changes in the security's prepayment riskO C.A change in tax law that eliminates or reduces the tax-exempt status of interest on the debtsecuritya.O d. A major business combination or major disposition that necessitates the sale or transfer ofheld-to-maturity securities to maintain the entity's existing interest rate risk position orcredit risk policy

Investing is the act of putting money into assets that have the potential to increase in value,…

Answered: According to AC Topic 320, 'Investments…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 28RQSC

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According to AC Topic 320, 'Investments - Debt and Equity Securities', all of the following changes in circumstances may cause an entity to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future, EXCEPT for: O a. Evidence of a significant deterioration in the issuer's creditworthiness O b. Changes in market interest rates and related changes in the security's prepayment risk Oc. A change in tax law that eliminates or reduces the tax-exempt status of interest on the debt security O d. A major business combination or major disposition that necessitates the sale or transfer of held-to-maturity securities to maintain the entity's existing interest rate risk position or credit risk policy

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