When do GAAP require disclosure about the maturities of investments related to debt proceeds?

GAAP (Generally Accepted Accounting Principles) requires disclosures related to the maturities of investments when specific types of transactions occur, particularly those involving debt proceeds. This requirement is critical for providing users of financial statements with relevant information about the timing and liquidity risks associated with those investments.

In the case of both reverse repurchase agreements and securities lending transactions, these activities involve transferring ownership of securities and may include investments financed by debt proceeds. Providing information about the maturities of these investments allows stakeholders to better understand the risks associated with the timing of cash flows, particularly regarding when the investments will need to be settled or liquidated to repay any related debt.

By requiring disclosures for both types of transactions, GAAP ensures that the financial statements present a comprehensive view of the organization’s financial position and the potential timing risks associated with debt-related investments. This enhances transparency for investors and creditors, who rely on such information in assessing the organization's liquidity and overall financial health.