Investing notion definition how to#
Investing notion definition archive#

Investing notion definition how to#

The Board tentatively agreed, in response to due process comments regarding how to evaluate a change in how an asset is used by the government, that additional guidance is not needed as to a government’s usage of an asset as it was discussed in the characteristics of an investment. The Board also tentatively agreed that trust lands that meet the definition of an investment asset should be classified as investment property and, hence, measured at fair value. In response to due process comments regarding how the definition of an investment would affect reporting for land and real estate assets, the Board tentatively agreed that the proposed scope of the Fair Value Measurement and Application project should not include extending fair value measurement to real property that could be reclassified as investment property.

The Board tentatively agreed, in response to due process comments, that a specific asset cannot simultaneously meet the proposed definition of an investment and the definition of a capital asset, the proposed definition of an investment in its preliminary view is neither too restrictive nor too broad, and investments should be limited to assets. The Board tentatively agreed that the examples presented in the Preliminary Views should be presented as an appendix in the next due process document, and additional examples can be provided in the implementation guide, if needed. In response to due process comments regarding improvements to the examples provided in the Preliminary Views, the Board tentatively agreed that those examples struck the right balance between not being overly prescriptive and providing adequate guidance. The Board tentatively reaffirmed its preliminary view that the proposed definition of investment should be “a security or other asset that a government holds primarily for the purpose of income or profit, and its present service capacity is based solely on its ability to generate cash, to be sold to generate cash, or to procure services for the citizenry.” However, in response to due process comments addressed later in the meeting, the Board tentatively decided that the phrase “to procure services for the citizenry” should be deleted in the proposed definition presented in the next due process document. The Board continued its redeliberations of issues addressed in the Preliminary Views, Fair Value Measurement and Application, concentrating on due process comments related to the application of fair value to assets and liabilities as described in Chapter 3 of the Preliminary Views.

Investing notion definition archive#

Minutes archive Fair Value Measurement and Application