Investments - it costs the organization intended for the purchase of securities (bonds, shares, checks, etc.), investments in joint ventures and to the statutory funds of any other entities, as well as providing organizations of loans under the bill of exchange or other debtcommitments.Accounting for financial investments, regardless of their type, governed by the general provisions on accounting.
Uniform and unambiguous classification of financial contributions does not exist, but nevertheless, they still share some of the following characteristics:
1. In accordance with the economic substance are:
- debt investments (checks, bonds, loans,promissory notes);
- equity (investments in authorized capital, shares);
- derivatives (bills of lading, warrants, options, forward and futures contracts);
2. In term of his conversion:
- short-term (less than one year);
- long-term (over one year).
3. As can be issued by the Issuer:
- public authorities;
- individuals;
- legal entities;
- municipal authority.
to spend the accounting of financial investments need to be made three conditions simultaneously:
- availability of documents that are decorated appropriately and support available to the Organization the right of ownership;
- transfer of all financial risks to the organization;
- the ability of financial investments to be cost-effective organization.
keeping a record of investments, you can not make mistakes.For example, you must know that to them did not include:
- own shares that were bought back from shareholders for the purpose of cancellation or for resale;
- real estate investments, as well as movable property, which are real-material form and made available for use by the organization at any time for a certain payment;
- promissory notes issued as payment for work performed, or goods sold products;
- jewelry, various works of art, precious metals and other valuables of a similar nature that are not acquired for normal activity.
Accounting for financial investments have to be very precise and to enforce such tasks:
- Reliable display of historical cost in their retirement or purchasing.
- timely reflection of operations on the acquisition or disposal, the right paperwork.
- Timely revaluation.
- control over the safety of all financial investments that have been taken for accounting purposes.
- control over the formation and use of allowances for depreciation.
- correct calculation of gains related to financial investments.
- accuracy of taxes, related to transactions by investing its funds.
- formation in accounting information on their presence and movements.
- Inventory to identify shortages or surpluses.
When keep records of investments postings are stated at 58 account.He is active and has its own sub-accounts:
- Short-term investments in securities.
- provide short-term loans.
must be said that the inclusion of investments made sure of their most original cost.The order of its formation depends on the manner in which they arrive.Thus, their initial cost is made up from several variables, namely, the cost of acquisition of investments, consulting and information services, the amount of commissions and other costs which are somehow related to the investments.
