Classification, types and accounting of financial investments

Financial investments are the expenses of an organization intended for the purchase of securities (bonds, shares, checks and others), investing in joint activities and in the statutory funds of any other organizations, as well as providing loans to organizations for promissory notes or other promissory notes. Accounting for financial investments, regardless of their type, is governed by the General Accounting Regulations.

Uniform and unambiguous classification of all financial contributions does not exist, but nevertheless, they are still divided by some of the following criteria:

1. In accordance with the economic essence are:

  • Debt investments (checks, bonds, loans granted, promissory notes);
  • Share (contributions to the authorized capital, shares);
  • Derivatives (bills of lading, warrants, options, forward and futures contracts);

2. By the term of your application:

  • Short-term (less than a year);
  • Long-term (more than a year).

3. The emitter may be emitted:

  • State bodies;
  • Physical persons;
  • Legal entities;
  • Municipal authority.

In order to conduct financial accounting of financial investments, three conditions must be fulfilled simultaneously:

- availability of documents that are duly executed and confirm the ownership right of the organization;

- transition of all financial risks to the organization;

- the ability of financial investments to be economically beneficial to the organization.

Keeping records of financial investments, you can not make mistakes. So, for example, you need to know that they are not treated at all:

  • Own shares, which have been redeemed from shareholders for the purpose of cancellation or for further sale;
  • Investment in real estate, as well as in movable property, which have material and material form and are provided by the organization for use for some time for some payment;
  • Bills of exchange issued in settlements for work performed, sold products or goods;
  • Jewelry, various works of art, precious metals and other values of a similar nature that were not acquired for the conduct of a normal activity.

Accounting for financial investments must be extremely precise and ensure the fulfillment of such tasks:

  1. A reliable display of the historical cost when they are disposed of or acquired.
  2. Timely reflection of operations for acquisition or disposal, the correct documentation.
  3. Timely reassessment.
  4. Control over the safety of all financial investments that have been accepted for accounting.
  5. Control over the formation and use of provisions for depreciation.
  6. Correct accrual of income from operations related to financial investment.
  7. Correctness of the calculation of taxes related to operations for investing funds.
  8. Formation in the accounting reporting of information on their availability and movement.
  9. Inventory to identify shortages or surpluses.

When keeping records of financial investments, transactions on transactions are reflected in 58 accounts. It is active and has its sub-accounts:

  1. Short-term financial investments in securities.
  2. Provided short-term loans.

It is necessary to say that accounting of financial investments is made at their most original cost. At the same time, the order of its formation directly depends on how they act. Thus, their initial value is formed immediately from several values, namely: from the cost of acquiring financial investments, consultations and information services, the amount of commissions and other costs that are somehow connected with the investments.

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