BLK » Topics » Investments in Debt and Marketable Equity Securities

This excerpt taken from the BLK 8-K filed Dec 4, 2009.

Investments in Debt and Marketable Equity Securities

The Company’s investments are classified as trading, available-for-sale, or held-to-maturity based on the Company’s intent to sell the security or, for a debt security, the Company’s intent and ability to hold the debt security to maturity, pursuant to Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for Certain Investments in Debt and Equity Securities (ASC 320-10, Investment – Debt and Equity Securities).

Trading assets consist primarily of marketable investments in debt securities and mutual funds and assets held by consolidated variable interest entities. Trading securities are those investments that are purchased principally for the purpose of selling them in the near term or those assets for which the Company has elected the fair value option under SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS 159) (ASC 825-10, Financial Instruments). Trading securities are carried at fair value on the combined balance sheets with changes in fair value recorded in trading (loss) gain from consolidated funds and fair value (loss) on investments in the combined statements of income and other comprehensive income during the period of the change.

Available-for-sale securities are those investments that are not classified as trading assets or held-to-maturity. Available-for-sale securities are carried at fair value on the combined balance sheets with changes in fair value recorded in the combined statements of invested equity in the period of the change. Upon the disposition of an available-for-sale security, the Company reclassifies the gain or loss on the security from other comprehensive income to other income/expense on the Company’s combined statements of income and other comprehensive income. Held-to-maturity debt securities are recorded at amortized cost in the combined balance sheets and periodically evaluated for other-than-temporary impairment losses, which are recorded in other income/expense on the Company’s combined statements of income and other comprehensive income.

The Company also earns investment income, which includes dividends and net fair value gains (losses) on investments. Interest income is recorded using the effective-yield method. Dividends are recorded on the date on which the shares are quoted ex-dividend.

 

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2. Significant Accounting Policies (continued)

This excerpt taken from the BLK 8-K filed Sep 17, 2009.

Investments in Debt and Marketable Equity Securities

BlackRock holds debt and marketable equity investments which, pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities, are classified as trading, available-for-sale, or held-to-maturity based on the Company’s intent to sell the security or, for a debt security, the Company’s intent and ability to hold the debt security to maturity.

Trading securities are those investments which are purchased principally for the purpose of selling them in the near term. Trading securities are carried at fair value on the consolidated statements of financial condition with changes in fair value recorded in non-operating income in the consolidated statements of income during the period of the change. Available-for-sale securities are those securities which are not classified as trading securities or held-to-maturity. Available-for-sale securities are carried at fair value on the consolidated statements of financial condition with changes in fair value recorded in the accumulated other comprehensive income component of stockholders’ equity in the period of the change. Upon the disposition of an available-for-sale security, the Company reclassifies the gain or loss on the security from accumulated other comprehensive income to non-operating income on the Company’s consolidated statements of income. Held-to-maturity debt securities are recorded at amortized cost in the consolidated statements of financial condition. At December 31, 2008 and 2007, BlackRock did not own any held-to-maturity investments.

 

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Table of Contents

BlackRock, Inc.

Notes to the Consolidated Financial Statements

(Dollar amounts in millions, except share data or as otherwise noted)

 

2. Significant Accounting Policies (continued)

Investments (continued)

This excerpt taken from the BLK 10-K filed Mar 2, 2009.

Investments in Debt and Marketable Equity Securities

BlackRock holds debt and marketable equity investments which, pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities, are classified as trading, available-for-sale, or held-to-maturity based on the Company’s intent to sell the security or, for a debt security, the Company’s intent and ability to hold the debt security to maturity.

Trading securities are those investments which are purchased principally for the purpose of selling them in the near term. Trading securities are carried at fair value on the consolidated statements of financial condition with changes in fair value recorded in non-operating income in the consolidated statements of income during the period of the change. Available-for-sale securities are those securities which are not classified as trading securities or held-to-maturity. Available-for-sale securities are carried at fair value on the consolidated statements of financial condition with changes in fair value recorded in the accumulated other comprehensive income component of stockholders’ equity in the period of the change. Upon the disposition of an available-for-sale security, the Company reclassifies the gain or loss on the security from accumulated other comprehensive income to non-operating income on the Company’s consolidated statements of income. Held-to-maturity debt securities are recorded at amortized cost in the consolidated statements of financial condition. At December 31, 2008 and 2007, BlackRock did not own any held-to-maturity investments.

 

F-12


BlackRock, Inc.

Notes to the Consolidated Financial Statements

(Dollar amounts in millions, except per share data or as otherwise noted)

 

2. Significant Accounting Policies (continued)

 

Investments (continued)

 

This excerpt taken from the BLK 10-K filed Feb 28, 2008.

Investments in Debt and Marketable Equity Securities

BlackRock holds debt and marketable equity investments which, pursuant to Statement of Financial Accounting Standards (“SFAS”) No. 115, Accounting for Certain Investments in Debt and Equity Securities, are classified as trading, available-for-sale, or held-to-maturity based on the Company’s intent to sell the security or for a debt security the Company’s intent and ability to hold the debt security to maturity.

Trading securities are those investments which are purchased principally for the purpose of selling them in the near term. Trading securities are carried at fair value on the consolidated statements of financial condition with changes in fair value recorded in non-operating income in the consolidated statements of income during the period of the change. Available-for-sale securities are those securities which are not classified as trading securities or held-to-maturity. Available-for-sale securities are carried at fair value on the consolidated statements of financial condition with changes in fair value recorded in the accumulated other comprehensive income component of stockholders’ equity in the period of the change. Upon the disposition of an available-for-sale security, the Company reclassifies the gain or loss on the security from accumulated other comprehensive income to non-operating income on the Company’s consolidated statements of income. Held-to-maturity debt securities are recorded at amortized cost in the consolidated statements of financial condition. At December 31, 2007 and 2006, BlackRock did not own any held-to-maturity investments.

 

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BlackRock, Inc.

Notes to the Consolidated Financial Statements

(Dollar amounts in thousands, except per share data or as otherwise noted)

 

2. Significant Accounting Policies (continued)

 

Investments (continued)

 

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