Route the portfolio before measurement

Linden Peak's trial balance says “Investments, $2.4 million.” That account name does not tell you whether the entity holds creditor rights, ordinary shares, or an interest accompanied by influence. It does not tell you why management can or cannot sell a bond, whether quoted prices exist, or whether a board seat is substantive. Measurement begins only after those questions have owners.

Build one routing card per instrument

Record the legal issuer, instrument form, units or face amount, acquisition and reporting dates, contractual cash flows, market identifier, custody evidence, ownership percentage, voting rights, board or policy participation, and any options or restrictions. Then attach the dated scope and classification or influence memorandum. Unknown is an acceptable state; an invented route is not.

Use the resulting fork:

1. a creditor interest in Topic 320 scope continues to a supplied HTM, AFS, or trading classification;
2. an ordinary equity security without an equity-method or consolidation route continues to Topic 321; and
3. a supported significant-influence conclusion continues to Topic 323.

Other instruments stop for research. A preferred share can contain debt-like features without becoming a debt security by appearance. A note can fall under another specialized model; a beneficial interest, for example, can require a different scope analysis. This module does not classify from a product name.

Reverse perspective carefully

The bond contract used in the issuer module still supplies coupons and principal, but the investor owns an asset rather than owing a liability. The holder adds classification, credit-loss, fair-value, and sale evidence that does not appear as an equal-and-opposite issuer entry. Reuse the cash-flow map; do not reverse the accounting blindly.

Exit check

Produce six routing cards for the case portfolio. Each must name the instrument right, candidate Topic, supplied conclusion, evidence owner, unresolved fact, and next schedule. If the answer is merely “investment,” the work has not begun.