Question

Need help in analysis the below Debt Investment paragraph.

DEBT INVESTMENTS

We consider all highly liquid debt investments with original maturities from the date of purchase of three months or less as cash equivalents. Cash equivalents can include investments such as corporate debt, financial institution instruments, government debt,and reverse repurchase agreements.Marketable debt investments are generally designated as trading assets when a market risk is economically hedged at inception with a related derivative instrument, or when the marketable debt investment itself is used to economically hedge currency exchange rate risk from re measurement. Investments designated as trading assets are reported at fair value. Gains or losses on these investments arising from changes in fair value due to interest rate and currency market fluctuations and credit market volatility, largely offset by losses or gains on the related derivative instruments and balance sheet re measurement, are recorded in interest and other, net.Marketable debt investments are considered available-for-sale investments when the interest rate and foreign currency risks are not hedged at the inception of the investment or when our criteria for designation as trading assets are not met. Available-for-sale debt investments with original maturities of approximately three months or less from the date of purchase are classified within cash and cash equivalents. Available-for-sale debt investments with original maturities at the date of purchase greater than approximately three months and remaining maturities of less than one year are classified as short-term investments.Available-for-sale debt investments with remaining maturities beyond one year are classified as other long-term investments.Available-for-sale debt investments are reported at fair value, with unrealized gains or losses, net of tax, recorded in accumulated other comprehensive income (loss). We determine the cost of the investment sold based on an average cost basis at the individual security level, and record the interest income and realized gains or losses on the sale of these investments in interest and other,net.Our available-for-sale debt investments are subject to periodic impairment reviews. For these investments, we consider whether it is more likely than not that we will be required to sell the investment before recovery of its amortized cost basis, or whether recovery of the entire amortized cost basis of the investment is unlikely because a credit loss exists. When we do not expect to recover the entire amortized cost basis of the investment, we separate other-than-temporary impairments into amounts representing credit losses, which are recognized in interest and other, net, and amounts not related to credit losses, which are recognized in other comprehensive income (loss).

Answer 1

mwe According to the given info can divide the debt as follows (1) Cash Equivalená - Delst investments will Three months or less matusities. It include Corporate debt tinancial Instruments → Government bonds - Reverse repurchase agreements → Available-for-sale debt investments & Markolā ble detit investmen 5.- Ocht- lavestments with free months or more consiclered an Shost berm investiments a -More than one year is long term investuvenis, Antonio Gains or losses from Cash egutvalent debt investments off set by related instruments. non Gains or losses from Marketable dest investments off set to comprehensive income statement. French Scanned with CamScanner

verlory management is one of the key areas within an Aircraft Servicing and Maintainence Organisation. The managemen of aircraft spares, Line Replacement Unit rolables, special hardware elems and consuma of aircraft or aircraft servicing. Rolables, special hardwa - We have to consider the dimensions of risk for debt investments - - Interest Rate Riste d - Market Resea rch - Credit Risk - Sinflatim Piste Due to the above risks, there may be results in loss or gain for debt investments which are offsets to related derivative instruments or Comprehensive income stalensest. Scanned with CamScanner