|
|
 | | | |
- close
- close
- close
- close
These excerpts taken from the CITZ 10-K filed Mar 13, 2009. Accounting for Certain Investments in Debt and
Equity Securities, investment securities must
be classified as held-to-maturity, available-for-sale or trading. Management
determines the appropriate classification at the time of purchase. The
classification of securities is significant since it directly impacts the
accounting for unrealized gains and losses on securities. Debt securities are
classified as held-to-maturity and carried at amortized cost when management has
the positive intent and the Company has the ability to hold the securities to
maturity. Securities not classified as held-to-maturity are classified as
available-for-sale and are carried at fair value, with the unrealized holding
gains and losses, net of tax, reported in other comprehensive income and do not
effect earnings until realized.
The fair values of the Company’s securities are generally determined by reference to quoted prices from reliable independent sources utilizing observable inputs. Certain of the Company’s fair values of securities are determined using models whose significant value drivers or assumptions are unobservable and are significant to the fair value of the securities. These models are utilized when quoted prices are not available for certain securities or in markets where trading activity has slowed or ceased. When quoted prices are not available and are not provided by third party pricing services, management judgment is necessary to determine fair value. As such, fair value is determined using discounted cash flow analysis models, incorporating default rates, estimation of prepayment characteristics and implied volatilities. The Company evaluates all securities on a quarterly basis, and more frequently when economic conditions warrant additional evaluations, for determining if an other-than-temporary impairment ( Accounting for Certain Investments in Debt and Equity Securities, investment securities must be classified as held-to-maturity, available-for-sale or trading. Management determines the appropriate classification at the time of purchase. The classification of securities is significant since it directly impacts the accounting for unrealized gains and losses on securities. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and the Company has the ability to hold the securities to maturity. Securities not classified as held-to-maturity are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of tax, reported in other comprehensive income and do not effect earnings until realized. The fair The These excerpts taken from the CITZ 10-K filed Mar 9, 2009. Accounting for Certain Investments in Debt and
Equity Securities, investment securities must
be classified as held-to-maturity, available-for-sale or trading. Management
determines the appropriate classification at the time of purchase. The
classification of securities is significant since it directly impacts the
accounting for unrealized gains and losses on securities. Debt securities are
classified as held-to-maturity and carried at amortized cost when management has
the positive intent and the Company has the ability to hold the securities to
maturity. Securities not classified as held-to-maturity are classified as
available-for-sale and are carried at fair value, with the unrealized holding
gains and losses, net of tax, reported in other comprehensive income and do not
effect earnings until realized.
The fair values of the Company’s securities are generally determined by reference to quoted prices from reliable independent sources utilizing observable inputs. Certain of the Company’s fair values of securities are determined using models whose significant value drivers or assumptions are unobservable and are significant to the fair value of the securities. These models are utilized when quoted prices are not available for certain securities or in markets where trading activity has slowed or ceased. When quoted prices are not available and are not provided by third party pricing services, management judgment is necessary to determine fair value. As such, fair value is determined using discounted cash flow analysis models, incorporating default rates, estimation of prepayment characteristics and implied volatilities.
35 The Company evaluates all securities on a quarterly basis, and more frequently when economic conditions warrant additional evaluations, for determining if an other-than-temporary impairment ( Accounting for Certain Investments in Debt and Equity Securities, investment securities must be classified as held-to-maturity, available-for-sale or trading. Management determines the appropriate classification at the time of purchase. The classification of securities is significant since it directly impacts the accounting for unrealized gains and losses on securities. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and the Company has the ability to hold the securities to maturity. Securities not classified as held-to-maturity are classified as available-for-sale and are carried at fair value, with the unrealized holding gains and losses, net of tax, reported in other comprehensive income and do not effect earnings until realized. The fair
35 | |||||||
The | EXCERPTS ON THIS PAGE:
RELATED TOPICS for CITZ: |
| |||||||
