question archive According to the Boeing Financial report for 2019 that you can find it on the internet
According to the Boeing Financial report for 2019 that you can find it on the internet
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According to the Boeing Financial report for 2019 that you can find it on the internet.
a. What investments does Boeing report in the fiscal year 2019, and where are these investments reported in its financial statements?
b. How are Boeing investments valued? How does Boeing determine fair value?
c. When Boeing accounts for its investments at fair value and amortized cost?
d. What information provided in the accompanying notes on the classifications of their investments?
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a. The investments of Boeing consists of Equity method investments, ‘Time deposits’, ‘Available for sale debt instruments’, ‘Equity and other investments’ and Restricted cash & cash equivalents. They are recorded in short-term and other investments or the investments section of the statement of financial position.
b. Time deposits are carried at cost, available for sale debt instruments are recorded at fair value, equity method investments are valued using the equity method (initially recorded at historical cost and based on the investor’s percentage ownership adjustments) and ‘Other equity investments’ are recorded at fair value and cash and cash. Equity investments for which readily determinable fair value are not available are measured at cost, less impairments plus or minus observable price changes. Fair values are determined using discounted cash flows.
c. Fair values are used whenever they are required as per standards and when they prove to be more reliable than any other methods. They are estimated based on quoted prices for identical assets are available in active markets or significant other observable inputs or significant unobservable inputs. Amortized costs is used as a proxy when the market price is not available for short-term investments.
d. The information in the notes consists of the disclosure of all the short-term investments as well as the dividends received in 2019 and 2018, with the retained earnings including undistributed earnings from our equity method investment. It also discloses equity method investments separately.
