How are the corporationís debt securities reported on the financial statements?
ACC/300
May 5, 2015


How are the corporationís debt securities reported on the financial statements?

Debt Securities, according to Investopedia (2015), are ďAny debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date.Ē Debt securities for corporations include government or corporate bonds, certificates of deposit, preferred stock, collateralized securities, and zero-coupon securities (Investopedia, 2015). Corporations use debt securities to gain financing for expansion, operations, or for any other activity were the corporation needs access to cash.
Starbucks has long-term and current debt listed on its balance sheet, which makes up its debt securities. The listed liabilities for Starbucks are being used for expansion into domestic and foreign markets, as while as acquisitions of other companies. Starbucks current liabilities for debt securities were $794,500,000 and its long-term liabilities for debt securities totaled $2,440,500,000.


Investopedia. (2015). Debt Security. Retrieved from
http://www.investopedia.com/terms/d/debtsecurity.asp