Financial investments and their types. Accounting for financial investments

Balance sheet is the main type of accounting reports. It shows the state (property and finances) of the organization for a certain period and / or at the current moment. It is divided into two points - a liability and an asset, which are necessarily equal to each other. They, in turn, are divided into sub-items, where the types of asset and liability are displayed, respectively. The structure of the balance sheet is fixed by the order of the Ministry of Finance of the Russian Federation of 1999 under number 43n.

Short-term financial investments (KFV)

Short-term financial investments (KFV) - funds invested for a period not exceeding twelve months from the date of the last report. They are located in the "Asset" group, in the 2nd item of the Balance Sheet, code page 1240. All directions of financial investments are reflected there: securities (debt), transferred loans (including %%), purchased rights, shares, deposits under partnership agreements, a deposit (divided into rubles and foreign currency).

This does not include loans that are interest-free, since they are not considered an investment. If the term for any of the points is not set, but it is planned to make a profit or repay the loan in less than a year, this situation is reflected in the KFV.

Directions of short-term financial investments

KFV - a method of protecting the organization of free cash from inflation or to obtain additional benefits, in the future. Since investments of this kind have high liquidity and are part of current assets, they become one step with the means of payment, their responsibilities include ensuring the financial obligations of the owner.

Most often, short-term investments are made in materials or raw materials. The advantage of this type of investment is that such deposits are least of all exposed to the risk of being lost because the situation in the economy can be predicted for a period of 12 months. As influencing factors, you can also identify the political situation and the exchange rate of the national currency.

As for deposits of securities, then the enterprise takes a conscious risk, since in this case it is best to invest in liquid securities, which can be easily transferred into finance at any time. Only a competent specialist can predict this, perhaps even with the use of any analytical programs. Some enterprises specifically turn to such specialists for advice. This item of short-term financial investments can be classified as liquid only if the securities have a minimal risk of falling in price and can be easily sold.

If we talk about loans, then, as a rule, loans issued for short periods are subject to higher interest rates than long-term loans (FEF). Such a measure will save the company from non-return of funds.

The company has the right to transfer any monetary contribution from long-term to short-term, if its purpose or intention to use it changes further. Such a clause should be provided for in the statutory accounting documents of the company.

Example In February 2010, an organization received a loan from another company for a period of 24 months, therefore, it must repay it in February 2012. In the 2010 report, it will be displayed in the FEF clause. After two years, it can be transferred to the KFV, since the time remaining for its payment is less than a year.

Short-term financial investments are indicated on account 58. This account is provided for bringing together information about investments and their movements within the enterprise. Counting can be opened, suppose 58-1 - "Securities". Accounting is carried out by groups and types of investments of the organization, regardless of the country in which funds or assets are placed.

Information that must be disclosed when specifying an accountant in the reports (minimum)

1. Methods for evaluating PV by their types.
2. Variants of situations that are possible when these methods are changed, the cost of those investments that have a defined price and which do not have it as such, or it is not possible to determine.
3. The difference between the price today and the price indicated in the previous report.
4. The value of those securities that are pledged, as well as those that were transferred to other companies or individuals (excluding sales).
5. Information on reserves in case of depreciation of deposits, indicating the type, amount of reserves, and the amount by which they were used in the specified year.
6. Data on loans and debt securities provided (present value, methods of providing discounts).

Actual costs include amounts paid to the seller under the contract, amounts paid for information and consulting services, payment for intermediary services, and other costs directly related to the acquisition of assets as financial investments.

If the amount of costs for information and consulting services is immaterial in relation to the amount paid to the seller of securities, such costs are recognized as other operating expenses of the organization in the reporting period in which the acquired securities were accepted for accounting.

General business and other similar expenses are not included in the cost of purchasing financial investments, if they are not directly related to their acquisition.

When purchasing financial investments, the actual costs are formed taking into account the amount differences arising in cases when payment is made in rubles in an amount equivalent to the amount in foreign currency (conventional monetary units), before the assets are accepted as financial investments for accounting.

The initial cost of financial investments, the cost of which upon acquisition is set in foreign currency, is determined in rubles by recalculating foreign currency at the exchange rate of the Bank of Russia in effect on the date these assets were accepted for accounting. The initial cost of financial investments, at which they are accepted for accounting, may change in cases established by regulatory enactments. For the purpose of subsequent assessment, financial investments are divided into two groups: financial investments, for which the current market value can be determined, and financial investments, for which the market value is not determined.

Upon disposal of assets accepted for accounting as financial investments, for which the current market value can be determined in accordance with the established procedure, are reflected in the financial statements at the end of the reporting year at the current market value by adjusting the assessment for the previous reporting date. Adjustments can be made monthly or quarterly. The difference between the assessment of financial investments at the current market value as of the reporting date and the previous assessment is included in other income or expenses in correspondence with the financial investment account. These assets include the most liquid financial investments.

Upon disposal of an asset accepted for accounting as financial investments, for which the current market value is not determined, are reflected in the accounting and financial statements at their original cost. If the current value is not determined for an object of financial investments, previously estimated at the current market value, at the reporting date, such an object is reflected in the financial statements at the cost of its last assessment.

The entity may compile a present value estimate of debt securities and originated loans and provide evidence of the reasonableness of such a calculation. The withdrawal of financial investments from the accounting of an organization is recognized on the date of a one-time termination of the conditions for accepting these investments for accounting and occurs in cases of repayment, sale, gratuitous transfer, transfer in the form of a contribution to the authorized capital of other organizations, transfer to the account of a contribution under a simple partnership agreement, and NS.

Contributions to the authorized capital of other organizations (with the exception of shares in joint-stock companies), loans granted to other organizations, deposits in credit institutions, accounts receivable acquired on the basis of assignment of the right of claim are evaluated upon disposal at the initial cost of each of the listed accounting units. Securities upon disposal can be valued at the average initial cost, determined for each type of securities as a quotient of dividing the initial value of this type of securities by their number, which are summed up, respectively, from the initial value and the quantity (balance) at the beginning of the month and received during of the given month of securities. Upon disposal of financial investments valued at the current market value, their value is determined based on the latest assessment. For each type of financial investment during the reporting year, you can use only one assessment method. This method of assessment should be fixed in the accounting policy of the organization.

Financial investments in the balance sheet

Additional decryption of data on financial investments by their types and groups is given in Section 2 of the Explanations to the Balance Sheet and the Statement of Financial Results. For this, Table 3.1 of the specified section is intended.

Accounting for such property is regulated by the Accounting Regulations “Accounting for Financial Investments” (PBU 19/02) (approved by order of the Ministry of Finance of Russia No. 126n).

According to this document, financial investments, in particular, include:

Securities (government, municipal, other companies) and debt securities (bonds, bills);
the exception is provided for own securities and debt shares redeemed from shareholders, bills of exchange issued as security for payment to suppliers, issued bonds;
contributions to the authorized capital of other companies;
the amount of loans provided to other firms at interest;
deposits in banks for which income is accrued;
accounts receivable acquired under the contract of assignment of the right of claim (cession);
contributions of a partner organization under a simple partnership agreement (joint activity).

PBU 19/02 provides that assets that have a tangible form are not reflected as financial investments. For example, fixed assets and inventories (materials, goods).

Financial investments must meet all the requirements listed in paragraph 2 of PBU 19/02. There are three of them. First. The company must have documents that confirm its right to a financial investment. For example, for loans provided - an agreement; for bills issued by third-party organizations - a bill, for shares or bonds - the shares themselves, bonds or a certificate for them (if they are received in documentary form), an extract from the register or depo account (if they are received in non-documentary form); for deposits in banks - an agreement; for contributions to authorized capital - the charter of the company that received this contribution, etc.

Second. Transfer to the company of all financial risks associated with these investments (risk of price changes, debtor's insolvency, liquidity, etc.). And the third. Ability to generate income in the future. For example, in the form of interest, dividends, the difference between the purchase and sale prices. If certain assets are not capable of generating income (for example, interest-free loans), they are not reflected as part of financial investments.

In line 1170 of the balance sheet, this amount is not indicated. The amount of the loan that has not been repaid is reflected either as part of other non-current assets in line 1190 (if the loan is long-term), or as part of accounts receivable in line 1230 of the balance sheet (if the loan is short-term). As we said above, line 1170 of the balance sheet is intended specifically for long-term financial investments. Short-term ones are taken into account on line 1240 of the form. According to clause 19 of the Accounting Regulations "Financial Statements of an Organization" (PBU 4/99) (approved by order of the Ministry of Finance of Russia No. 43n), assets and liabilities are considered short-term if their circulation or maturity does not exceed 12 months. Otherwise, they are considered long-term (letters of the Ministry of Finance of Russia No. 07-02-18 / 01, No. 07-02-18 / 01).

At the same time, the company has the right to transfer certain financial investments from long-term assets to short-term ones (for example, if at the time of the balance sheet formation the remaining circulation (maturity) period is less than 12 months) and vice versa. The right to such a translation should be enshrined in the provisions of the accounting policy of the firm.

Financial investment account

Sub-accounts can be opened to account 58 "Financial investments":

58-1 "Shares and Shares",
58-2 "Debt securities",
58-3 "Loans granted",
58-4 "Contributions under a simple partnership agreement", etc.

Subaccount 58-1 "Shares and Shares" takes into account the presence and movement of investments in shares of joint-stock companies, authorized (joint) capitals of other organizations, etc.

Subaccount 58-2 "Debt securities" takes into account the presence and movement of investments in government and private debt securities (bonds, etc.).

Financial investments made by the organization are reflected in the debit of account 58 "Financial investments" and the credit of the accounts on which the values ​​to be transferred towards these investments are taken into account. For example, the purchase by an organization of securities of other organizations for a fee is carried out on the debit of account 58 "Financial investments" and the credit of account 51 "Current accounts" or 52 "Currency accounts".

For debt securities for which the current market value is not determined, the organization is allowed the difference between the initial value and the par value during the period of their circulation evenly, as far as the income due on them in accordance with the terms of the issue of income, is attributed to the financial results of a commercial organization or a decrease or an increase in the costs of a non-profit organization.

When writing off the amount of excess of the purchase value of bonds and other debt securities acquired by the organization over their par value, entries are made on the debit of account 76 "Settlements with different debtors and creditors" (for the amount of income due to receive on securities) and the credit of accounts 58 "Financial investments "(for part of the difference between the purchase and nominal value) and 91" Other income and expenses "(for the difference between the amounts attributed to accounts 76" Settlements with different debtors and creditors "and 58" Financial investments ").

When additional accrual of the amount of excess of the par value of bonds and other debt securities acquired by the organization over their purchase value, entries are made on the debit of accounts 76 "Settlements with various debtors and creditors" (for the amount of income due to receive on securities) and 58 "Financial investments" ( for a part of the difference between the purchase and par value) and the credit of account 91 "Other income and expenses" (for the total amount referred to accounts 76 "Settlements with different debtors and creditors" and 58 "Financial investments").

Redemption (redemption) and sale of securities recorded on account 58 "Financial investments" are reflected in the debit of account 91 "Other income and expenses" and credit of account 58 "Financial investments" (except for organizations that reflect these operations on account 90 "Sales ").

Subaccount 58-3 "Loans granted" takes into account the movement of cash and other loans provided by the organization to legal entities and individuals (except for employees of the organization). The loans provided by the organization to legal entities and individuals (except for the employees of the organization), secured by promissory notes, are accounted for on this sub-account separately.

The loans granted are reflected in the debit of account 58 "Financial investments" in correspondence with account 51 "Current accounts" or other relevant accounts. The return of the loan is reflected in the debit of account 51 "Current accounts" or other relevant accounts and the credit of account 58 "Financial investments".

On subaccount 58-4 "Contributions under a simple partnership agreement", the partner organization takes into account the presence and movement of contributions to common property under a simple partnership agreement.

The provision of a deposit is reflected in the debit of account 58 "Financial investments" in correspondence with account 51 "Settlement accounts" and other relevant accounts for accounting for the allocated property.

Upon termination of a simple partnership agreement, the return of property is reflected in the credit of account 58 "Financial investments" in correspondence with property accounts.

Analytical accounting for account 58 "Financial investments" is carried out by types of financial investments and objects in which these investments were made (organizations - sellers of securities; other organizations in which the organization is a member; organizations-borrowers, etc.). The construction of analytical accounting should provide the ability to obtain data on short-term and long-term assets. At the same time, accounting of financial investments within the framework of a group of interrelated organizations, about whose activities the consolidated financial statements are drawn up, is kept on account 58 "Financial investments" separately.

Financial investment cost

For this, clause 19 of PBU 19/02 provides for the division of financial investments into two groups:

O investments, which can be used to determine their current market value;
- o investments for which the current market value is not determined.

For the first group, financial investments (shares, bonds), quoted on the stock exchange, the organization reflects at the end of the year at the current market value by adjusting their valuation, the previous date. The organization can make this adjustment on a monthly or quarterly basis (the organization sets the timing of the adjustment in its accounting policy independently).

The difference between the assessment of financial investments at the current market value as of the reporting date and their previous assessment is referred to the financial results of a commercial organization as part of other income (expenses) or an increase in income (expenses) of a non-commercial organization in correspondence with the account of financial investments.

For the second group, financial investments, the current market value of which is not determined, are reflected in accounting at their initial cost (clause 21 of PBU 19/02).

The second group includes all other financial investments: shares in authorized (reserve) capital, loans issued, deposits in banks, accounts receivable acquired under an assignment agreement, deposits under a simple partnership agreement, etc.

However, some peculiarities should be taken into account here. For example, for debt securities (promissory notes, bonds) that are not quoted on the stock exchange, the difference between the initial and par value can be written off to other expenses (income) evenly over the period of their circulation.

For securities belonging to the first group, the method for determining the current market value is given in PBU 19/02, where it is indicated that this value for accounting purposes means their market price calculated by the organizer of trading on the securities market (clause 13 of PBU 19 / 02).

At present, the procedure for determining the market price of securities and the maximum limit of fluctuations in their market price is established by the FFMS of Russia only for securities traded on the organized market. This category includes shares of joint-stock companies, government and corporate bonds, shares (mutual funds), American depository (ADR).

Based on clause 20 of PBU 19/02, the organization is obliged to make adjustments to the current market value of securities at the end of the reporting year. In the face of falling stock prices, information on the value of a company's assets is the most important criterion for assessing the viability of a business. In addition, in order to prepare financial statements reflecting the real value of assets, revaluation should currently be carried out on a monthly basis.

Revaluation of securities is carried out as follows. First of all, the difference between the value of the security at the current moment and at the last reporting date is determined. The result obtained (income in the form of a positive difference or an expense in the form of a negative difference) is taken into account in accounting on account 91 "Other income and expenses" as part of other income or expenses, respectively.

The initial cost of financial investments. If the organization received securities free of charge, then their initial cost is recognized:

If securities are traded on the stock market, then their current market value at the time of acceptance for accounting is fixed;
- If the securities are not traded on the stock market, then the amount of money that can be obtained as a result of the sale of the received securities at the time of their acceptance for accounting is fixed.

If an asset is accepted for accounting as a financial investment, but the current market value is not determined for it, then upon disposal of this asset, its value is determined:

At the initial cost of each unit of financial investments;
- at the average initial cost;
- by the FIFO method - at the initial cost of the first in the time of acquisition of financial investments.

The following information is subject to disclosure in the financial statements:

Methods for assessing financial investments upon their disposal in accordance with the generalization by groups and the consequences of changes in the methods of this assessment;
- the value of financial investments for which the current market value is determined and not determined;
- the difference between the market value as of the reporting date and the previous assessment of financial investments;
- if there are debt securities for which the current market value has not been determined, then the difference between their initial and nominal value during the period of their circulation is subject to disclosure;
- the cost of securities and other financial investments encumbered with a pledge;
- the cost of securities and other financial investments transferred without sale to other organizations;
- the amount of the provision for the depreciation of financial investments with an indication of their type of provision. At the same time, the amount of the reserve created in the reporting year, the amount of the reserve recognized as other income of the reporting period and the amount of the reserve used in the reporting year are disclosed;
- if there are debt securities or loans granted, then disclosure is made of their valuation at their discounted value, their discounted value and methods of discounting. These data are disclosed in the notes to the balance sheet and the income statement.

Types of financial investments

Investments of funds in financial assets for the purpose of generating income in accounting are considered as financial investments.

Depending on the period for which financial investments were made, they are divided into:

Long-term, when the established maturity period exceeds one year, or investments made with the intention to receive income on them for more than one year;
- short-term, when the established maturity does not exceed one year or investments were made without the intention to receive income on them for more than one year.

The accounting procedure for financial investments is governed by the Accounting Regulations “Accounting for Financial Investments” (PBU 19/02), approved by order of the Ministry of Finance of Russia No. 126n.

To accept financial investments for accounting, the following conditions must be met simultaneously:

1. Availability of documents confirming the organization's right to financial investments and the right to receive funds and other assets arising from this right.
2. Transfer of financial risks associated with this investment (risk of price changes, debtor's insolvency, liquidity, etc.).
3. Economic benefits, that is, the ability to generate income in the future in the form of interest, dividends or in the form of an increase in value (the difference in selling prices and book value).

The financial investments of the organization in accordance with clause 3 of PBU 19/02 include:

State and municipal securities.
Securities of other organizations.
Contributions to the authorized (pooled) capital of other organizations.
Providing loans to other organizations.
Deposits in credit institutions.
Accounts receivable acquired on the basis of an assignment of a claim.

Financial investments include securities held by an organization for the purpose of increasing its equity capital by earning income through the distribution of profits (in the form of interest, dividends) or for the investing organization to obtain profit from the sale or other disposal of these assets.

Assessment of financial investments

The nominal value of financial investments is the value indicated in the financial instrument itself, accepted in the contract, recorded in the register or printed on a security. The par value of equity instruments shows the amount of the share of the share capital that they represent, and of debt instruments - the amount of the borrower's obligations, which he undertakes to repay. The purchase and sale of financial investments does not change the nominal value, it remains constant for the entire period for which this investment is issued.

The value declared by the issuer (organization), at which the securities are offered during the initial placement on the market, is the value of the placement, or the value that may be higher or lower than the nominal value of financial investments. If the share premium exceeds the nominal price, this means that the security is placed with a premium, as a result of which share premium is generated; otherwise, if the par value exceeds the offering value, the issuer has a loss.

The cost at which a financial instrument is subsequently traded on the market (sold and bought) is the market, or current, value of financial investments, which is determined at a particular moment by the nominal value, the liquidity of the investments and the amount of income generated.

When determining the market value, it is necessary to be guided by the decree of the Federal Commission for the Securities Market No. 03-52 / ps "On Approval of the Procedure for Calculating the Market Price of Equity Securities and Investment Units of Unit Investment Funds Admitted to Circulation through Trade Organizers, and Establishing the Limit Limit of Market Price Fluctuations ".

Financial investments are accepted for accounting at their initial cost. The historical cost of financial investments purchased for a fee is the amount of actual acquisition costs, excluding VAT and other recoverable taxes. The initial cost includes the purchase price (issue or market value) and direct expenses for the acquisition of financial investments (remuneration of a financial broker, interest on borrowed funds used to purchase investments, other direct acquisition costs).

Actual expenses that form the initial cost of financial investments are:

Investments for contributions to the authorized capital of the organization - the monetary value of the investments, agreed upon by the founders (participants) of the organization;
investments made to the account of the contribution of the organization - a partner under a simple partnership agreement - at the cost of their reflection in the balance sheet as of the date of entry into force of the partnership agreement;
investments received free of charge - their market value as of the date of accepting investments for accounting;
investments acquired under contracts that provide for non-monetary funds - at the value of assets transferred or to be transferred by the organization on account of the fulfillment of the terms of the contract.

Actual expenses for the acquisition of financial investments are determined taking into account exchange rate differences arising from payments in rubles in an amount equivalent to an amount in foreign currency (conventional monetary units).

If for the acquired financial investments the main part of the costs are the costs paid under the agreement to the seller, then the rest of the costs for the acquisition of these investments can be recognized by the organization as other costs, i.e. can be recorded on account 91 "Other income and expenses", and not on account 58 "Financial investments".

After accepting financial investments for accounting, their value is subject to periodic adjustment, which is carried out directly for investments with market value, and indirectly - for investments for which the market value has not been determined. In the first case, the organization is obliged to reflect financial investments in the balance sheet at market prices. For this, their revaluation is carried out and the difference between the market value and the previous balance sheet estimate (market or initial, when acquiring objects in the reporting period) is attributed to the accounts of other income and expenses. In the second case, instead of revaluation, a provision is made for the depreciation of financial investments if the value or profitability of these investments falls. With an increase in value or profitability, the previously accrued provision decreases until the original cost is fully restored.

According to clause 38 of PBU 19/02 in the financial statements, the value of financial investments for which an impairment reserve has been formed is shown at the book value less the amount of the reserve.

Assessment of financial investments upon their disposal (redemption, sale, donation, transfer as a contribution to the authorized capital of another organization, etc.) is carried out directly at the time of disposal. Financial investments at which the current market price is determined are evaluated based on their latest assessment.

Financial investments for which the current market price is not determined, at the time of disposal, are estimated in one of the following ways:

1) at the initial cost of each financial investment;
2) at the average initial cost;
3) at the initial cost of the first in the time of acquisition of financial investments (FIFO).

Financial investment reserve

Let me remind you that, according to PBU 19/02, financial investments are understood as investments in the authorized capital of other organizations, loans issued, deposits in banks, debt securities.

One can argue what is the nature of interest-free loans: are they financial investments or just accounts receivable. But I believe that account 58 "Financial investments" can still be used.

The ability to generate income is a concept that many people do not understand as broadly as they should. What it means to generate income in the form of interest on a loan is clear to everyone. But many consider interest-free loans to be receivables. If you lend without interest to a subsidiary that the company created to transfer part of its functions, then monetary support at the stage of formation is also a benefit. Not income in the full sense of the word, but still an economic benefit.

Account 58 also takes into account the acquired rights of claim. The company has sold its products, is waiting for money, the buyer does not pay. The seller decides to assign the debt to another company. The one who purchased the debt will have a financial investment. Purchased debt is recognized at cost.

Traditionally, another type of financial investment is recorded on account 55 - deposits placed by the company in the bank.

All types of financial investments that I have listed can be depreciated. Section VI of PBU 19/02 provides information from which it is possible to understand for which financial investments reserves are not created. So, there is no need to create a reserve for financial investments that circulate in the organized market. Most often these are securities traded on the market. Revaluation is carried out on them. At least as of December 31st. It is not forbidden even earlier. The best option is at the end of each quarter.

Clause 37 of PBU 19/02 explains what a sustainable decline in the value of financial investments is. Such a decrease is foreseen, for example, if the carrying value at the current and previous reporting date is significantly higher than the estimated value.

We return to the signs of a significant decrease in the cost of financial investments. It is present if the estimated cost has significantly decreased during the year. It fell all the time, never increasing. Or if at the reporting date there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

These are so vague formulations that examples of situations of materiality of reduction were added to PBU 19/02. They can be found in paragraph 37. For example, this is the absence or a significant decrease in income from financial investments in the form of interest or dividends with a high probability of a further decrease in these receipts in the future. Suppose there are no dividends for a year or two and there are serious reasons to doubt whether there will be a profit as such.

Analysis of financial investments

In f. No. 1 "Balance sheet" long-term receivables are reflected in section II "Current assets". The high proportion of intangible assets in the composition of non-current assets and a high proportion of their growth in the change in the total value of non-current assets for the reporting period indicate the innovative nature of the company's strategy. High indicators for long-term financial investments reflect the financial and investment development strategy.

A more detailed analysis of intangible assets, fixed assets and financial investments is carried out on the basis of the relevant sections of f. No. 5 "Appendix to the Balance Sheet".

The value of the transferred assets is determined on the basis of the price at which the organization receiving financial investments as payment usually determines the value of similar assets in comparable circumstances (clause 14 of PBU 19/02). If it is impossible to determine the value of the transferred assets, the value of the financial investments received by the organization is established on the basis of the price at which similar ones can be acquired in comparable circumstances.

PBU 19/02 also touched upon such an important verification procedure as the correctness of the assessment during the period of ownership and disposal of financial investments. In the course of checking objects for which the current market value can be determined, it is necessary to establish whether they have been periodically revalued at the current market value. According to clause 20 of PBU 19/02, an organization can make such a revaluation monthly or quarterly, and the difference between the assessment of such financial investments as of the reporting date and the previous assessment can be attributed to financial results as part of operating income (expenses).

An inventory of financial investments should be preceded by an inventory of cash and settlements.

1. The inventory (working) commission receives inventory lists (hereinafter - the inventory), two copies for each type of financial investment:

For inventory of securities - form INV-16;
- for other financial investments - the recommended RINV-1 form.

2. The composition of financial investments is checked.

Financial investments include:

State and municipal securities;
- securities of other organizations, including debt securities, in which the date and value of redemption is determined (bonds, promissory notes);
- loans granted to other organizations;
- deposits in credit institutions;

3. The legality of the classification of assets as financial investments is checked.

To accept assets as financial investments for accounting, one-time fulfillment of the following conditions is required:

The presence of properly executed documents confirming the existence of the organization's right to financial investments and to receive funds or other assets arising from this right;
- the ability to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (the difference between the sale (redemption) price of a financial investment and its purchase value, as a result of its exchange, use to repay the organization's obligations, increase in the current market value etc.).

4. Each type of inventoryable financial investment is analyzed sequentially, and the amount on the corresponding accounting account is determined. Organizations acquire, in most cases, securities of other organizations for an indefinite period.

When purchasing securities, the following goals are pursued:

Profit from investments made;
- establishing control over the organization whose securities were purchased, etc.

When purchasing securities of other organizations, the stability of buyers, sales market, field of activity, and duration of operation are taken into account. Organizations make financial investments in other organizations by purchasing shares or bonds. These investments can be short term or long term.

Financial investments in securities are accepted for accounting in the amount of actual costs for the investor.

The actual costs of purchasing securities can be the following amounts:

Paid in accordance with the contract to the seller;
- paid to specialized organizations and other persons for information and consulting services related to the purchase of securities;
- fees paid to intermediary organizations with whose participation the securities were purchased;
- expenses for the payment of interest on borrowed funds used for the purchase of securities prior to their acceptance for accounting;
- other expenses directly related to the purchase of securities.

At the end of each reporting period, both the cost price and the market value of the securities must be determined.

The yield on securities is also compared with a guaranteed income, which is taken as the Bank of Russia rate or interest on government bonds or treasury bonds.

Evaluation and forecasting of the economic efficiency of purchased or acquired securities can be made using both absolute and relative indicators, that is, by determining the current market price (at which acquisition is possible) and intrinsic value (based on the subjective assessment of each investor) or by calculating regarding profitability. In this case, the difference between the price and the value of the financial asset is that the price is an objective indicator, and the intrinsic value is a calculated indicator (the result of the investor's own approach). The present intrinsic value can be calculated by dividing the expected returnable cash flow for a certain period by the expected or required rate of return on the financial instrument, taking into account the number of periods of income.

If the amount of investment costs, that is, the market value of the security, is higher than the current value of the security, it is profitable for the holder of this security to sell it, but the investor, in this case, has no benefit to acquire it due to the fact that he will receive a profit less than expected.

Based on the above, the current value of a security depends on:

Expected cash flows;
- the duration of the forecast period of income generation;
- the required rate of return.

Long-term financial investments

Classification of long-term financial investments by investment object

An investment object is what an investor invests in. The investor (person) himself is considered to be the subject of investment. Consider the classification of long-term financial investments or investments according to the object of capital investment.

Various types of securities - this type of capital investment is usually called portfolio investment. In our case, securities (stocks or bonds) are bought for a period of more than one year. Usually, when investing in securities long-term, the investor does not pursue the goal of making money on speculation.

For the purpose of investing in a securities portfolio, this type of long-term capital investment is usually divided into two groups:

Investing capital in the Central Bank (here - securities) for the purpose of partial redemption of a joint-stock company - this gives the investor the right to take part in the management of the joint-stock company.
- Investing capital in the Central Bank in order to preserve cash is quite rare, since securities are highly liquid assets, but investors still use them, buying up shares of stable joint-stock companies, the impact of market fluctuations on which is minimal.

By type of securities, they are also subdivided into state (issued, as a rule, by the Central Bank of the Russian Federation) and private, which are issued by private joint stock companies.

Debt securities are usually bills of exchange. A promissory note allows you to receive the capital transferred to the holder of the promissory note for a specified period, usually large amounts in promissory notes are taken for at least a year, so that the debtor has time to collect the necessary funds or bring his enterprise to a decent economic level.

Contributions to the authorized capital of other organizations allow the investor to receive part of the profits of these organizations after their development. This is also a long-term capital investment, because only a very small group of enterprises can fully recoup the costs of their creation in less than one year.

Loans provided to other people or organizations are almost the same as giving a bill of exchange to a person, but in the considered option, the bill of exchange is not written, a promissory note is formed by a simple contract or.

Deposits in companies that issue loans - you give money that will be given to other people as a loan. For this, you will receive a part of the percentage of the payment. Usually, such investments are made for several years.

Contributions to partnerships. A partnership is a special organizational and legal form that allows, by summing up the funds contributed by the co-founders, to obtain sufficient capital to start the operation of the enterprise.

The profit is allocated according to the amount of capital contributed by each individual participant. The partnership also gives the right to jointly manage the business. If the created partnership pays for all the expenses in one year, then profits, in any case, will have to wait for more than one year, this is unambiguous.

Similar investments. It is possible to describe some more objects for long-term capital investment that we did not indicate in this classification, but the main objects are listed and described by us.

Let's now learn how to distinguish objects that will not be long-term financial investments, but which some investors take for them:

Securities that have been purchased for the purpose of resale are simple financial speculation, not a long-term cash investment. We have already touched on this point in the previous paragraphs.
- a bill of exchange, which was issued not as a paper certifying the receipt of funds, but in exchange for some material values ​​that have already been acquired by a person. In other words, a bill of exchange here is simply a means of settlement, not a promissory note between the parties.
- investments in real estate, for the purpose of its temporary use to obtain material benefits. Payments in this case are made by rent. This type of investment cannot be called long-term.
- the acquisition of expensive things not for the purpose of obtaining material benefits, but for the purpose of preserving capital or satisfying aesthetic needs. For example, you bought an expensive painting because you value and admire art, in which case your investment will not be called a long-term investment.

Financial statements of long-term financial investments

Even if investments are made from an individual, and not a legal organization, you still need to have an understanding of the forms of legal reporting on long-term financial investments. Let's indicate what information needs to be recorded in the reports when making the described attachments.

Assessment of financial investments. On what basis did you evaluate the property when making an investment or purchase, and why did you pay a different price for it? If real estate has become the object of your investment (but it may not always be - see the previous classification), you need to indicate the data of the expert who assessed it, if you buy shares - the price of a share at the moment.

How can a change in current valuations affect an investment? These two points must be worked out with a financial specialist, because there is practically no point in figuring out all the details on your own. Imagine a situation where there is a sharp fluctuation in the market. How will this affect the value of the assets you have acquired, how much money can you lose, how to insure against this? In order not to raise unnecessary questions, all these points must be registered in the reports.

The difference between the market price of an asset at the time of report generation and the value specified during the appraisal work. Naturally, in most cases, this difference will take place for long-term investments, because the market does not stand still, in addition, there is a certain percentage of inflation annually, which will also increase or decrease the value of the asset you have purchased. If you have purchased a share for which the current market value cannot be determined, the difference between the initial value of the security and its par value is indicated. All data must also be included in the financial statements.

If, when buying assets for a long-term financial investment of money, you took out a loan or money secured, the cost, size of the loan, interest on it must be included in the report without fail, since in any case they will cause additional costs for the company in the future.

If you have established a joint stock company, you must indicate the value and volume of securities that were knocked out of the joint stock company. The disposal can be due to various reasons: a transfer to third-party shareholders or something else.

You must have capital reserves to cover inflationary costs. The money that you put into the enterprise will depreciate depending on the current inflation rate and the industry of your business. In order for the money to be enough for the normal functioning of the business, reserves are needed. The amount of capital in these reserves must be prescribed.

If there are promissory notes or bonds - an estimate of their discounted value and a description of the methods of discounting.

These are the main materials on long-term financial investments, their classification, as well as the necessary accounting reports. If you don't understand them yourself, seek the services of an accountant who can help you cope with difficulties. Long-term financial investments must be properly planned, taking into account all kinds of risks and possible profits. This work cannot be done without various financial specialists, so it is worth spending the money on decent financial advice.

Financial investment audit

In accordance with the Regulation on accounting "Accounting for financial investments" PBU 19/02, the financial investments of the organization include:

State and municipal securities, securities of other organizations, including debt securities in which the date and value of redemption is determined (bonds, bills of exchange);
- contributions to the authorized (pooled) capitals of other organizations (including subsidiaries and affiliates);
- loans granted to other organizations, deposits in credit institutions;
- accounts receivable acquired on the basis of the assignment of the right of claim, etc.

The information base used by the auditor when checking financial investments includes:

Documents regulating accounting and taxation of financial investments;
accounting statements;
order on the accounting policy of the organization;
registers of synthetic and analytical accounting of financial investments;
primary documents on the reflection of financial investments.

According to the order on the accounting policy of the organization, the auditor can get acquainted with the following information:

The procedure for recognizing income from participation in the authorized capital of other organizations as income from ordinary activities or operating income;
a working chart of accounts used to reflect financial investments;
forms of primary documents developed and approved by the organization for accounting for financial investments.

Audit of acceptance of financial investments for accounting

Operations (transactions) on financial investments are carried out on the basis of: a foundation agreement (for investments in the authorized capital of other organizations), a securities purchase and sale agreement, a loan agreement, a deposit agreement, a securities pledge agreement, a simple partnership agreement (a joint activity), etc. The auditor must check whether the specified contracts comply with the requirements of other regulatory legal acts governing transactions with securities.

The initial task of the auditor is to verify the correctness of the classification of the acquisition of an asset as a financial investment.

To accept assets for accounting as financial investments in accordance with PBU 19/02, the following conditions must be met at a time:

The presence of properly executed documents confirming the existence of the organization's right to financial investments and to receive funds or other assets arising from this right;
transition to the organization of financial risks associated with financial investments (risk of price changes, risk of insolvency of the debtor, liquidity risk, etc.);
the ability of financial investments to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (in the form of the difference between the sale (redemption) price of a financial investment and its purchase value, as a result of its exchange, use to repay the organization's obligations, increase current market value, etc.).

The primary documents on the basis of which financial investments are taken into account include:

Certificate of acceptance and transfer of securities;
- act of acceptance and transfer of contributions to joint activities;
- advice on the posting of property by a comrade in charge of common affairs;
- bank statements and payment orders for the transfer of deposits in cash (for non-cash payments) or a cash outflow order and a receipt for an incoming cash order (for cash payments);
- invoices for the transfer of property (assets) in payment for securities;
- an inventory list of securities and forms of strict reporting documents (form No. INV-16) and other documents.

When checking the correctness of assigning objects to financial investments, it is necessary to find out whether the organization has the rights to a security and whether it follows the procedure for transferring rights to securities.

According to the form of fixing the rights expressed by the security, the rights are divided into documentary and non-documentary.

In the documentary form, the owner is established on the basis of the presentation of a duly executed certificate of the security or, if such is deposited, on the basis of an entry on the securities account. The auditor must be presented with certificates of shares or a statement of the depo account.

In the case of non-documentary form, the owner is established on the basis of an entry in the system for maintaining the register of owners of securities or, in the case of depositing securities, on the basis of an entry in the custody account. The auditor must be presented with a register or a statement of the custody account.

The accounting unit for financial investments is chosen by the organization independently in such a way as to ensure the formation of complete and reliable information about these investments, as well as proper control over their presence and movement. Depending on the nature of financial investments, the order of their acquisition and use, the unit of financial investments can be a series, a batch, etc., i.e. a homogeneous set of financial investments.

Typical mistakes are:

1) when paying for a contribution to the authorized capital of a limited liability company, the amount of the contribution is written off immediately to the expenses of the organization, although it should be reflected in the composition of financial investments;
2) when paying membership fees or paying a foundation fee to a non-profit organization, the amount of the contribution is reflected as part of financial investments, although, according to the legislation, the organization does not have any rights to these amounts and such amounts are not financial investments;
3) the rights of claim acquired under the cession agreement are not reflected in the structure of financial investments, but are recorded on account 76 “Settlements with debtors and creditors”.

When checking the execution of primary documents, it should be borne in mind that a security is a strictly formal document, its form and mandatory details must comply with the requirements established by law for certain types of securities. The absence of mandatory requisites of a security or non-compliance of a security with the form established for it entails its nullity (Article 144 of the Civil Code of the Russian Federation). Therefore, the auditor must carry out both a formal check of the forms of securities and an arithmetic check of the primary documents used in the execution of transactions.

Verification of primary documents for accounting for financial investments is especially important, since these documents determine a special procedure for the transfer of ownership of securities.

The documents on the basis of which the objects of financial investments are taken into account must indicate the purpose of the acquisition and the period during which this object is supposed to be used.

Next, the auditor must check the correctness of the assessment of financial investments. In accordance with the requirements of PBU 19/02, when purchasing securities under a sale and purchase agreement, financial investments are accepted for accounting in the amount of actual costs for the investor.

Amounts paid in accordance with the agreement to the seller;
amounts paid to organizations and other persons for information and consulting services related to the acquisition of these assets. If an organization has been provided with information and advisory services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such an acquisition, the cost of these services is referred to the financial results of a commercial organization (as part of operating expenses) or to an increase in the expenses of a non-profit organization. the reporting period when it was decided not to purchase financial investments;
remuneration paid to an intermediary organization or another person through whom the assets were acquired as financial investments;
other costs directly related to the acquisition of assets as financial investments.

When acquiring financial investments at the expense of borrowed funds, the costs of loans and borrowings received are accounted for in accordance with the Accounting Regulations “Accounting for loans and credits and their maintenance costs”. General business and other similar expenses are not included in the actual costs of acquiring financial investments, unless they are directly related to the acquisition of financial investments.

If the amount of costs (other than amounts paid in accordance with the agreement to the seller) for the purchase of financial investments such as securities is insignificant in comparison with the amount paid in accordance with the agreement to the seller, the organization has the right to recognize such costs as other operating expenses in that reporting period , in which the specified securities were accepted for accounting.

Upon receipt of securities under a donation agreement (free of charge), they are evaluated at market prices at the date of acquisition.

If financial investments are made in foreign currency, it is necessary to check these transactions for compliance with the regulations of foreign exchange regulation.

Financial investments, the value of which is expressed in foreign currency, are valued in ruble equivalent at the exchange rate established by the Central Bank of the Russian Federation on the date of transactions.

The auditor checks whether securities with a maturity of more than one year are not revalued, since revaluation and exchange rate differences are only revalued for securities accounted for as part of short-term financial investments, as well as for funds on deposits placed by the organization in accordance with the established procedure (p. . 7 PBU 3/2000).

The costs associated with servicing the organization's financial investments, such as payment for the services of a bank and / or a depository for keeping financial investments, providing an extract from a securities account, etc., in accordance with PBU 19/02, should be classified as operating expenses of the organization.

Audit of the subsequent appraisal of financial investments

The initial cost of financial investments, at which they are accepted for accounting, may change in the cases established by legislation and PBU 19/02.

For the purposes of subsequent assessment, financial investments are divided into two groups, according to which the current market value can be determined and by which their current market value is not determined.

Financial investments, for which the current market value can be determined in accordance with the established procedure, are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their assessment as of the previous reporting date. The organization can make the specified adjustment on a monthly or quarterly basis.

The auditor is obliged to check the correctness of the classification of financial investments by these groups, as well as the procedure for determining the market quotation of the first group of investments as of the reporting date.

The difference between the assessment of financial investments at the current market value as of the reporting date and the previous assessment of financial investments should be attributed to the financial results of a commercial organization (as part of operating income or expenses) or an increase in the income or expenses of a non-commercial organization in correspondence with the financial investment account.

Financial investments for which the current market value is not determined shall be reflected in the accounting records and in the financial statements as of the reporting date at their initial cost (subject to the requirements for reflecting the depreciation of financial investments).

For debt securities for which the current market value is not determined, the organization is allowed the difference between the initial value and the par value during the period of circulation of the securities evenly as the income due on them (in accordance with the terms of issue) is attributed to the financial results of the commercial organization (in the composition of operating income or expenses) or to reduce or increase the expenses of a non-profit organization. In this case, the auditor checks the correctness of the calculations and the reliability of the assessment of debt securities at the reporting date.

For debt securities and loans granted, the organization can make a calculation of their assessment at discounted value. At the same time, no entries are made in accounting. The auditor should check the validity of such a calculation if the discounted value data are given in the notes to the financial statements.

Financial investment disposal audit

In accordance with PBU 19/02, the disposal of financial investments in the accounting of an organization is recognized on the date of a one-time termination of the conditions for accepting them for accounting.

When an asset is disposed of as a financial investment, for which the current market value is not determined, the value of the asset is determined based on the assessment in one of the following ways:

At the initial cost of each unit of accounting for financial investments;
at the average initial cost;
at the initial cost of the first in the time of acquisition of financial investments (FIFO method).

The valuation at the initial cost of the first financial investments at the time of acquisition is based on the assumption that the securities are written off within a month and another period in the sequence of their acquisition (receipt), i.e. the first to be written off securities should be valued at the initial value of the securities, the first in the time of purchase, taking into account the initial value of the securities registered at the beginning of the month. When this method is applied, the securities held in balance at the end of the month are valued at the original cost of the most recent acquisitions, and the cost of the securities sold takes into account the cost of the earliest acquisitions.

The application of one of these methods for a group (type) of financial investments is based on the assumption of the sequence of application of accounting policies. The auditor should study the provisions of the accounting policy, which specifies the method of measurement chosen by the organization, and, by means of recalculation, verify its observance when recording investment disposal transactions.

Balance sheet data audit

To confirm the accuracy of the financial statements and accounting data, the auditor checks the correctness of the inventory of financial investments.

During the check, he determines:

The timing of the inventory of financial investments is established in the order on accounting policy and whether these terms are observed;
the correctness of the registration of inventory documents (does the organization use unified forms of inventory lists, is the completeness and accuracy of entering data on the actual availability of securities in the inventories when they are stored at the organization's cash desk, etc.).

If the securities are stored in the organization, their inventory is carried out simultaneously with the inventory of funds. When storing securities in special organizations (banks, depositories, specialized depositories), the inventory consists in reconciling the balances of the amounts on the relevant accounts of the organization's accounting with the data of extracts from these special organizations.

Inventories must include issuers, security name, series, number, par and actual value, maturity dates and total amount. The auditor uses the inventory materials when checking the timeliness and completeness of the reflection in the accounting of income received from securities. The income received by the organization from financial investments is accounted for on account 91 "Other income and expenses" and in accordance with the Accounting Regulations "Income of the organization" (PBU 9/99) refer to operating income. It is a common mistake to report income that is not actually received, but is subject to accrual. For example, uncollected interest on loans issued.

Assessment of financial investments at the end of the reporting period is carried out depending on the accepted method of assessing financial investments at their disposal, i.e. at the current market value, at the initial cost of each accounting unit of financial investments, at the average initial cost, at the initial cost of the first financial investments at the time of acquisition (FIFO method).

The auditor should study the provisions of the accounting policy, which indicates the method of assessment chosen by the organization, and, by means of recalculation, verify its observance when reflecting the balance on the financial investment account.

When checking the correctness of the assessment of the value of financial investments at the reporting date, the auditor takes into account the requirements for accounting for their impairment.

Impairment is recognized as a sustained significant decrease in the value of financial investments, at which their current market value is determined below the economic benefit that the organization expects to receive from these financial investments in the normal conditions of its activities. In case of impairment, based on the calculation of the organization, the estimated cost of financial investments is determined, equal to the difference between their value at which they are reflected in accounting (book value), and the amount of such a decrease.

A steady decline in the value of financial investments is determined by the simultaneous presence of the following conditions:

As of the reporting date and the previous reporting date, the book value of financial investments is significantly higher than their estimated value;
during the reporting year, the estimated value of financial investments changed significantly downward;
as of the reporting date, there is no evidence that the estimated value of these financial investments may increase in the future.

Appearance of the organization-issuer of securities owned by the organization, or its debtor under the loan agreement signs or declaring it bankrupt;
the conclusion on the securities market of a significant number of transactions with similar securities at a price significantly lower than their book value;
absence or significant decrease in receipts from financial investments in the form of interest or dividends with a high probability of a further decrease in these receipts in the future, etc.

If a situation arises in which the depreciation of financial investments is possible, the auditor must check the conditions for a sustainable decrease in the value of financial investments.

If the impairment check confirms a significant decrease in the value of financial investments, then the auditor checks the creation of a provision for impairment of financial investments by the amount of the difference between the book value and the estimated value of such financial investments.

If such a reserve has been created, the auditor checks the correctness of the reflection of financial investments in the balance sheet; their value must be shown less the amounts of the provision. The auditor also verifies the completeness of the disclosure in the information on the provision for impairment of financial investments, which must indicate: the type of financial investments; the amount of the reserve created in the reporting year; the amount of the reserve recognized as operating income of the reporting period; the amount of the reserve used in the reporting year.

If there is no such reserve, the auditor invites the organization to correct the records and make a record of the creation of the reserve. If the organization refuses to make corrections to the accounting, if the amount of impairment is material, the auditor has the right to issue an auditor's report with a clause on incorrect assessment of the value of financial investments.

In the financial statements, financial investments should be presented with a subdivision by maturity (maturity): short-term and long-term. The auditor checks the correctness of the classification of financial investments. Since the classification depends on the organization's intention to hold or realize financial investments (transfer or dispose in another way), the auditor should study the organization's internal documents confirming these intentions, or make a special request in this regard to the management of the audited entity.

The auditor verifies the completeness of the disclosure of information about financial investments in the notes to the financial statements, in which, in accordance with the requirements of RAS 19, the following information should be disclosed at least:

Methods for assessing financial investments when they are disposed of by groups (types);
the consequences of changes in the methods of assessing financial investments upon their disposal;
the cost of financial investments, which can be used to determine the current market value and for which the current market value is not determined;
the difference between the current market value as of the reporting date and the previous assessment of financial investments, by which the current market value was determined;
debt securities for which the current market value has not been determined;
the difference between the initial value and the par value during the period of their circulation;
the cost and types of securities and other financial investments encumbered with a pledge;
the cost and types of retired securities and other financial investments transferred to other organizations or persons (except for sale).

For debt securities and loans granted, the following data are considered: their valuation at their discounted value; the value of their discounted value; applied methods of discounting (disclosed in the notes to the balance sheet and income statement).

PBU financial investments

1. This Regulation establishes the rules for the formation in accounting and financial statements of information on the financial investments of the organization. An organization hereinafter means a legal entity under the laws of the Russian Federation (with the exception of credit institutions and state (municipal) institutions).

This Regulation is applied when establishing the specifics of accounting for financial investments for professional participants in the securities market, insurance organizations, and non-state pension funds.

2. For the purposes of these Regulations, for the acceptance of assets as financial investments for accounting, the following conditions must be met at a time:

The presence of properly executed documents confirming the existence of the organization's right to financial investments and to receive funds or other assets arising from this right;
- transition to the organization of financial risks associated with financial investments (risk of price changes, risk of insolvency of the debtor, liquidity risk, etc.);
- the ability to bring economic benefits (income) to the organization in the future in the form of interest, dividends or an increase in their value (in the form of the difference between the sale (redemption) price of a financial investment and its purchase value as a result of its exchange, use to repay the organization's obligations, increase the current market cost, etc.).

3. The financial investments of the organization include: state and municipal securities, securities of other organizations, including debt securities, in which the date and value of redemption is determined (bonds, bills of exchange); contributions to the authorized (pooled) capitals of other organizations (including subsidiaries and dependent business entities); loans granted to other organizations, deposits in credit institutions, accounts receivable acquired on the basis of assignment of a claim, etc.

For the purposes of these Regulations, deposits of a partner organization under a simple partnership agreement are also taken into account as part of financial investments.

The financial investments of the organization do not include:

Own shares redeemed by a joint stock company from shareholders for subsequent resale or cancellation;
- promissory notes issued by the issuing organization to the selling organization in the settlement of goods sold, products, work performed, services rendered;
- investments of the organization in real estate and other property that has a tangible form, provided by the organization for a fee for temporary use (temporary possession and use) in order to generate income;
- precious metals, jewelry, works of art and other similar valuables not acquired for the purpose of carrying out ordinary activities.

4. Assets that have a tangible form, such as fixed assets, inventories, and intangible assets are not financial investments.

5. The unit of accounting for financial investments is chosen by the organization independently in such a way as to ensure the formation of complete and reliable information about these investments, as well as proper control over their presence and movement. Depending on the nature of financial investments, the order of their acquisition and use, the unit of financial investments can be a series, a batch, etc. a homogeneous set of financial investments.

6. The organization maintains analytical records of financial investments in such a way as to provide information on accounting units of financial investments and organizations in which these investments were made (issuers of securities, other organizations in which the organization is a member, borrowing organizations, etc.) ...

For government securities and securities of other organizations accepted for accounting, the analytical accounting should contain at least the following information: the name of the issuer and the name of the security, number, series, etc., nominal price, purchase price, costs associated with purchase of securities, total quantity, date of purchase, date of sale or other disposal, place of storage.

The organization can form in the analytical accounting additional information about the financial investments of the organization, including in the context of their groups (types).

7. Features of the assessment and additional rules for disclosing information on financial investments in dependent business entities in the financial statements are established by a separate regulatory act on accounting.

II. Initial assessment of financial investments

8. Financial investments are accepted for accounting at their original cost.

9. The initial cost of financial investments purchased for a fee is the amount of the organization's actual costs for their acquisition, excluding value added tax and other reimbursable taxes (except for cases provided for by the legislation of the Russian Federation on taxes and fees).

The actual costs of acquiring assets as financial investments are:

Amounts paid in accordance with the agreement to the seller;
- amounts paid to organizations and other persons for information and consulting services related to the acquisition of these assets. If the organization has been provided with information and consulting services related to making a decision on the acquisition of financial investments, and the organization does not make a decision on such an acquisition, the cost of these services is referred to the financial results of the commercial organization (as part of other expenses) or an increase in the costs of the non-profit organization of that the reporting period when it was decided not to purchase financial investments;
- remuneration paid to the intermediary organization or another person through whom the assets were acquired as financial investments;
- other costs directly related to the acquisition of assets as financial investments.

When purchasing financial investments at the expense of borrowed funds, the costs of loans and borrowings received are accounted for in accordance with the Accounting Regulations "Organization Expenses" PBU 10/99, approved by Order of the Ministry of Finance of the Russian Federation N 33n (registered with the Ministry of Justice of the Russian Federation registration N 1790) , and the Regulation on accounting "Accounting for loans and credits and their maintenance costs" PBU 15/01, approved by Order of the Ministry of Finance of the Russian Federation N 60n (according to the letter of the Ministry of Justice of the Russian Federation N 07/8985-YUD, the Order does not need state registration) ...

General business and other similar expenses are not included in the actual costs of acquiring financial investments, unless they are directly related to the acquisition of financial investments.

10. Excluded. - Order of the Ministry of Finance of the Russian Federation N 156n.

11. In the event that the amount of costs (other than the amounts paid in accordance with the agreement to the seller) for the purchase of such financial investments as securities is insignificant, in comparison with the amount paid in accordance with the agreement to the seller, the organization has the right to recognize such costs as other expenses of the organization, including the reporting period in which the specified securities were accepted for accounting.

12. The initial value of financial investments made as a contribution to the authorized (pooled) capital of an organization is their monetary value agreed upon by the founders (participants) of the organization, unless otherwise provided by the legislation of the Russian Federation.

13. The initial cost of financial investments received by the organization free of charge, such as securities, is:

Their current market value as of the date of acceptance for accounting. For the purposes of these Regulations, the current market value of securities is understood as their market price calculated in accordance with the established procedure by the organizer of trade on the securities market;
- the amount of money that can be obtained as a result of the sale of the received securities as of the date of their acceptance for accounting - for securities for which the market price is not calculated by the organizer of trading on the securities market.

14. The initial cost of financial investments acquired under contracts providing for the fulfillment of obligations (payment) by non-monetary funds is the cost of assets transferred or to be transferred by the organization. The value of assets transferred or to be transferred by an entity is determined by reference to the price at which, in comparable circumstances, the entity would normally determine the value of similar assets.

If it is impossible to establish the value of assets transferred or to be transferred by the organization, the value of financial investments received by the organization under contracts providing for the fulfillment of obligations (payment) with non-monetary funds is determined based on the cost at which similar financial investments are acquired in comparable circumstances.

15. The initial cost of financial investments contributed to the contribution of a partner organization under a simple partnership agreement is their monetary value, agreed by the partners in a simple partnership agreement.

16. Deleted. - Order of the Ministry of Finance of the Russian Federation N 156n.

17. Securities that do not belong to the organization on the basis of ownership, economic management or operational management, but which are in its use or disposal in accordance with the terms of the agreement, are accepted for accounting in the assessment provided for in the agreement.

III. Subsequent assessment of financial investments

18. The initial cost of financial investments, at which they are accepted for accounting, may change in cases established by legislation and this Regulation.

19. For the purposes of subsequent assessment, financial investments are divided into two groups:

Financial investments for which the current market value can be determined in accordance with the procedure established by these Regulations, and financial investments for which their current market value is not determined.
- Small businesses, with the exception of issuers of publicly placed securities, have the right to carry out a subsequent assessment of all financial investments in the manner prescribed by this Regulation for financial investments for which their current market value is not determined.

20. Financial investments for which the current market value can be determined in accordance with the established procedure are reflected in the financial statements at the end of the reporting year at the current market value by adjusting their assessment as of the previous reporting date.

The organization can make the specified adjustment on a monthly or quarterly basis.

The difference between the assessment of financial investments at the current market value as of the reporting date and the previous assessment of financial investments is referred to the financial results of a commercial organization (as part of other income or expenses) or an increase in income or expenses from a non-commercial organization in correspondence with the financial investment account.

21. Financial investments for which the current market value is not determined shall be reflected in the accounting records and in the financial statements as of the reporting date at their initial cost.

22. For debt securities, for which the current market value is not determined, the organization is allowed the difference between the initial value and the par value during the period of their circulation evenly, in proportion to the income due on them in accordance with the terms of issue, to be attributed to the financial results of the commercial organization ( as part of other income or expenses) or a decrease or increase in the expenses of a non-profit organization.

23. For debt securities and loans granted, the organization can make a calculation of their assessment at the discounted value. At the same time, no entries are made in accounting.

The organization shall provide evidence that this calculation is reasonable.

24. Financial investments are reflected in the balance sheet as of the reporting date at the cost determined based on the requirements of these Regulations.

If the current market value is not determined for an object of financial investments previously estimated at the current market value as of the reporting date, such an object of financial investments is reflected in the financial statements at the cost of its last valuation.

IV. Disposal of financial investments

25. Disposal of financial investments is recognized in the accounting of the organization as of the date of a one-time termination of the conditions for accepting them for accounting, given in paragraph 2 of these Regulations.

Disposal of financial investments takes place in cases of repayment, sale, donation, transfer in the form of a contribution to the authorized (pooled) capital of other organizations, transfer to the account of a contribution under a simple partnership agreement, etc.

26. Upon disposal of an asset accepted for accounting as a financial investment, for which the current market value is not determined, its value is determined based on an assessment determined in one of the following ways:

At the initial cost of each unit of accounting for financial investments; at the average initial cost;
- at the initial cost of the first in the time of acquisition of financial investments (FIFO method).

The application of one of these methods for a group (type) of financial investments is based on the assumption of the sequence of application of accounting policies.

27. Contributions to the authorized (pooled) capitals of other organizations (with the exception of shares in joint-stock companies), loans granted to other organizations, deposits in credit institutions, accounts receivable acquired on the basis of assignment of the right of claim are estimated at the initial cost of each accounting unit retired from the listed accounting for financial investments.

28. Securities can be assessed by the organization upon disposal at the average initial cost, which is determined for each type of securities as a quotient of dividing the initial value of the type of securities by their number, summing up respectively from the initial value and the amount of the balance at the beginning of the month and the securities received in during the given month.

29. The assessment at the initial cost of the first financial investments at the time of acquisition (FIFO method) is based on the assumption that securities are written off within a month and another period in the sequence of their acquisition (receipt), ie the first to be written off securities should be valued at the historical cost of the securities of the first acquisitions, taking into account the initial value of the securities registered at the beginning of the month. When using this method, the securities in balance at the end of the month are valued at the original cost of the most recent acquisitions, and the cost of the securities sold takes into account the cost of the earliest acquisitions.

30. Upon retirement of assets accepted for accounting as financial investments, for which the current market value is determined, their value is determined by the organization based on the latest assessment.

31. For each group (type) of financial investments during the reporting year, one assessment method is applied.

32. Assessment of financial investments at the end of the reporting period is carried out depending on the accepted method of assessing financial investments at their disposal, ie. at the current market value, at the initial cost of each accounting unit of financial investments, at the average initial cost, at the initial cost of the first financial investments at the time of acquisition (FIFO method).

33. Examples of the use of valuation methods when disposing of financial investments are given in the appendix to these Regulations.

V. Income and expenses on financial investments

34. Income from financial investments is recognized as income from ordinary activities or other income in accordance with the Accounting Regulations "Income of an organization" PBU 9/99, approved by Order of the Ministry of Finance of the Russian Federation N 32n (registered with the Ministry of Justice of the Russian Federation, registration number 1791) ...

35. Expenses related to the provision of loans by the organization to other organizations are recognized as other expenses of the organization.

36. Expenses related to servicing the organization's financial investments, such as payment for the services of a bank and / or a depository for keeping financial investments, providing an extract from a securities account, etc., are recognized as other expenses of the organization.

Vi. Impairment of financial investments

37. A sustained significant decrease in the value of financial investments, for which their current market value is not determined, below the value of the economic benefits that the organization expects to receive from these financial investments in the normal conditions of its activities, is recognized as an impairment of financial investments. In this case, based on the calculation of the organization, the estimated cost of financial investments is determined, equal to the difference between their value at which they are reflected in accounting (book value), and the amount of such a decrease.

A steady decline in the cost of financial investments is characterized by the simultaneous presence of the following conditions:

At the reporting date and at the previous reporting date, the book value is significantly higher than their calculated value;
- during the reporting year, the estimated value of financial investments changed significantly only in the direction of its decrease;
- as of the reporting date, there is no evidence that a significant increase in the estimated value of these financial investments is possible in the future.

Examples of situations in which impairment of financial investments can occur are:

Appearance of the organization-issuer of securities owned by the organization, or its debtor under a loan agreement signs of bankruptcy or declaring it bankrupt;
- execution on the securities market of a significant number of transactions with similar securities at a price significantly lower than their book value;
- the absence or significant decrease in receipts from financial investments in the form of interest or dividends with a high probability of a further decrease in these receipts in the future, etc.

38. In the event of a situation in which the depreciation of financial investments may occur, the organization must check the existence of conditions for a sustainable decrease in the value of financial investments.

The specified check is carried out for all financial investments of the organization, specified in paragraph 37 of these Regulations, for which there are signs of their impairment.

If the impairment test confirms a sustained significant decrease in the value of financial investments, the organization creates a reserve for the depreciation of financial investments by the amount of the difference between the book value and the estimated value of such financial investments.

A commercial organization forms the specified reserve at the expense of the financial results of the organization (as part of other expenses), and a non-commercial organization - by increasing costs.

In the financial statements, the value of such financial investments is shown at the book value less the amount of the formed reserve for their impairment.

Financial investments are tested for impairment at least once a year as of December 31 of the reporting year if there are signs of impairment. The organization has the right to carry out the specified check on the reporting dates of the interim financial statements.

The organization should ensure that the results of the said audit are confirmed.

39. If, according to the results of an audit for the depreciation of financial investments, a further decrease in their estimated value is revealed, then the amount of the previously created reserve for the depreciation of financial investments is adjusted towards its increase and decrease in the financial result for a commercial organization (as part of other expenses) or an increase in costs for a non-profit organization ...

If, based on the results of an audit for the depreciation of financial investments, an increase in their estimated value is revealed, then the amount of the previously created reserve for the depreciation of financial investments is adjusted towards its decrease and an increase in the financial result for a commercial organization (as part of other income) or a decrease in expenses for a non-profit organization.

40. If, on the basis of the available information, the organization concludes that a financial investment no longer meets the criteria for a sustainable significant reduction in value, as well as upon disposal of financial investments, the estimated value of which was included in the calculation of the allowance for impairment of financial investments, the amount of the previously created allowance for impairment for these financial investments, it is referred to the financial results of a commercial organization (as part of other income) or a decrease in expenses for a non-profit organization at the end of the year or the reporting period when the said financial investments were disposed of.

Vii. Disclosure of information in financial statements

41. In the financial statements, financial investments should be presented with a subdivision, depending on the maturity (maturity), into short-term and long-term.

42. In the financial statements, at least the following information is subject to disclosure, taking into account the materiality requirement:

Methods for assessing financial investments when they are disposed of by groups (types);
- the consequences of changes in the methods of assessing financial investments upon their disposal;
- the cost of financial investments, which can be used to determine the current market value, and financial investments, for which the current market value is not determined;
- the difference between the current market value as of the reporting date and the previous assessment of financial investments, by which the current market value was determined;
- for debt securities for which the current market value has not been determined - the difference between the initial value and the par value during the period of their circulation, calculated in accordance with the procedure established by clause 22 of these Regulations;
- the cost and types of securities and other financial investments encumbered with a pledge;
- the cost and types of retired securities and other financial investments transferred to other organizations or persons (except for sale);
- data on the reserve for the depreciation of financial investments, indicating: the type of financial investments, the amount of the reserve created in the reporting year, the amount of the reserve recognized as other income of the reporting period; the amounts of the reserve used in the reporting year;
- for debt securities and loans granted - data on their assessment at discounted value, on the value of their discounted value, on applied methods of discounting (disclosed in the notes to the balance sheet and profit and loss statement).

Current financial investments

1.financial investments (divided, in turn, into current and long-term);
2. capital investments;
3. investment in turnover.

Financial and capital investments are represented by three groups of long-term investment accounting accounts:

1. account 14 "Long-term financial investments" with three sub-accounts;
2. account 35 "Current financial investments" with two sub-accounts;
3. account 15 "Capital investments", with five sub-accounts.

Long-term financial investments are the following types of investments:

1.acquisition of long-term debt securities,
2.investments in the authorized capital of other enterprises, including the purchase of equity securities - shares,
3. providing other enterprises with long-term loans.

Current financial investments represent the following types of investments:

1. purchase of short-term debt securities;
2. purchase of equity securities (shares) for the purpose of further sale;
3. providing other companies with short-term loans.

In the methodology of accounting for investments, the difference between accounting for capital investments as internal investments and accounting for financial investments as investments in the activities of other entities is clearly visible.

The capital investment account (15) represents the cost of acquiring non-current assets, the initial value of future fixed assets or intangible assets is formed on it, and the financial investment account (14, 35) represents the already established amount of investments, quite ready for to bring the company an investment income.

Investments in turnover are represented on the balance sheet by current assets. Accordingly, the balances of all current asset accounts, taken together, represent the amount of current assets (own and borrowed) that the company currently has. The methodology for accounting for current assets has been described in other sections of this book.

Since long-term and current financial investments differ from each other only in the urgency of investments, we will consider them as one group.

Both long-term and current financial investments reflect different types of participation of one enterprise in the activities of another enterprise. The documents proving this participation are called financial instruments. Financial instruments can be primary and secondary (derivatives). So, for example, stocks are primary financial instruments, and stock options are secondary or derivatives. Derivative financial instruments are more commonly referred to as derivatives.

Long-term financial investments are long-term investments in the authorized capital of other enterprises and the provision of long-term loans to enterprises in order to obtain investment income.

By investing his assets in other enterprises, the investor ceases to consider them among the resources intended for internal consumption or exploitation, and begins to consider them as an impersonal set of assets, united by the name “investments”. That is, from the moment of investment, they are no longer for the investor enterprise its buildings, structures, equipment, cash or reserves, but, regardless of their form, represent shares, shares (shares), loans provided. From that moment on, these are buildings, structures, equipment, cash and stocks of another enterprise - an investment object, where, as consumption (use, operation), these assets are gradually transformed into other forms, completing a certain cycle.

The resources invested (invested) in another company are the investor's financial assets, and the documents that testify to the investments are financial instruments. On the other hand, on the balance sheet of the enterprise - the object of investment, these resources, taken into account as completely certain types of assets, in their total value are the investment property of the enterprise-investor.

Current financial investments represent short-term investments in the activities of other enterprises and the provision of short-term loans to enterprises in order to obtain investment income (within a period not exceeding 12 months) or for the purpose of further resale of financial instruments.

Capital investments are the following types of investments:

1.expenses for the acquisition of fixed assets: buildings, equipment, vehicles, land, working and productive livestock;
2. Expenses for the acquisition of other durable material objects with the conduct of capital construction, design and survey and geological exploration;
3. expenses for the acquisition of intangible assets.

Capital investment accounts, on the one hand, reflect the totality of expenses for the acquisition of capital assets, thus forming their initial cost, on the other hand, tangible (or intangible) objects that have not yet been put into operation, which can be sold or transferred even in an unfinished state free of charge.

Analytical accounting of capital investments is carried out by items of costs associated with the construction and acquisition of fixed assets - for each facility under construction or acquired. At the same time, the construction of analytical accounting should provide the ability to obtain data on the costs of: construction work, reconstruction and modernization of fixed assets, drilling work, equipment installation, design and survey work, other costs for capital investments in fixed assets, as well as on costs acquisition and creation of intangible assets - for each acquired object. Analytical accounting of the acquisition of working and productive livestock should provide the ability to obtain data on the costs associated with the formation of the main herd - by animal species: cattle, pigs, sheep, horses, etc.

Financial investment risk

In the most general form, risk is understood as the likelihood of loss or loss of income in comparison with the predicted option.

In particular, risk can be defined as the level of a certain financial loss. The loss can be expressed in the following:

A) the possibility of not achieving the set goal;
b) the uncertainty of the predicted result;
c) the subjectivity of assessing the predicted result.

A security that is associated with a larger loss is considered more risky. It is believed that government securities (assuming a stable economy) have little risk, since the variation in income on them is practically zero.

An ordinary share of any company is a more risky asset, because income on them can vary significantly.

In this regard, there is another definition of the concept of "risk": risk is the degree of variability of income that can be obtained due to the ownership of a given security.

The income that is secured by any security can consist of two elements:

Income from changes in the value of a security (share premium);
income from received dividends (interest).

Yield is the ratio of income to the original cost of an asset, expressed as a percentage (rate of return).

For example, a businessman a year ago bought shares at a price of 15 thousand. The current market price of shares was 16.7 thousand, received dividends for the year amounted to 1 thousand.

Then the profitability will be equal to:

Dx =: 15.0 = 18%.

Managers need to consider risk when dealing with securities. The key idea that the manager should be guided by is that the required profitability and risk change in the same direction, i.e. proportionally to each other.

It is clear that risk is a probabilistic assessment, so its quantitative measurement cannot be accurate. Depending on which technique is used, the level of risk may vary.

There are two main methods for assessing the risk of securities:

Sensitivity analysis;

The essence of the first method consists in calculating the range of variation in the yield of securities based on:

Pessimistic profitability forecast;
most likely;
optimistic.

This range of variation is considered as a measure of the risk associated with a given security:

R = Before - DP

The greater the range of variation in return (R), the greater the level of risk.

The essence of the second method consists in constructing the probability distribution of the profitability values, calculating the standard deviation from the average profitability and the coefficient of variation, which is considered as the level of risk of a given security.

Thus, the higher the coefficient of variation, the more risky this type of security is.

The main stages of calculations:

1. predictive estimates of the values ​​of profitability and the probabilities of their implementation are made;
2. the most probable profitability is calculated;
3. the standard deviation is calculated;
4. the coefficient of variation is calculated.

The risk of securities should be considered over time: the longer the planning horizon, the more difficult it is to predict the return on the securities, i.e. the range of variation of the yield and the coefficient of variation increases. This means that the risk increases over time.

The main conclusion is this: the more long-term the type of securities is, the more risky it is, the greater the variation in yield. For example, stocks are considered riskier than bonds because stocks have no expiration date.

The risk of an individual security cannot be viewed in isolation.

Any new investment (security) should be analyzed in terms of its impact on the change in the profitability and risk of the investment portfolio as a whole.

Since all financial investments differ in the level of profitability and risk, their combination in the portfolio averages these quantitative characteristics, and in the case of their optimal combination, a significant reduction in the risk of the securities portfolio can be achieved.

To assess the risk of a portfolio of securities, the same methods are used as for a separate type of securities, namely:

Analysis of the sensitivity of the conjuncture;
analysis of the probability distribution of profitability.

But the peculiarity is that the initial data for calculations are based on the weighted arithmetic mean.

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In the modern world, many individuals and legal entities carry out investment activities. Long-term financial investments are the most attractive. This is due to the mass of their advantages over other options for earning money. It is worth finding out what financial investments are.

Definition of the concept

Long-term financial investments are investments of a financial asset or capital by an individual, legal entity or enterprise for a period that exceeds one year. They are funds that are directed to the authorized capital of other companies. They can be invested in purchasing securities. They are also long-term loans received from third-party enterprises.

Classification of financial investments

The object of investment is fixed and circulating funds. They can also be targeted financial deposits, securities, intellectual property in which funds are invested. According to the object, long-term investments are divided into:

• Securities. This kind is considered portfolio investment. In this case, bonds and shares are purchased for a period of more than a year. Most often, with such investments, the investor has no desire to make money on speculation. Long-term investments of this type are divided into two groups:

Investing in securities to complete a partial acquisition of a joint stock company. This will allow the investor to participate in the management of the organization.

Investing capital in order to preserve it. This option is not common, due to the fact that securities are highly liquid assets. However, investors still use them if they are owned by stable joint stock companies and are not subject to significant fluctuations.

In addition, securities can be private or public, depending on who issues them.

• Debt securities. The most common type of them are bills. The holder of the bill of exchange receives the capital, which has been transferred to the holder at a predetermined date. Long-term financial investments of this type are usually large sums. They are provided for a period of more than a year, since during this period it is possible to improve the financial condition of the company.
• Contributions to the authorized capital of third parties contribute to the receipt of profits after the development of the given company. This investment is also long-term, as a small number of organizations are able to recoup all costs in a short time.
• Loans. Their provision is similar to bills. However, in this case, debt obligations are formed on the basis of a surety or an agreement.

Having familiarized yourself with the main types of investments, you should determine what can be investments in enterprises.

Other types of attachments

Long-term financial investments also include deposits in enterprises that provide loans. The investor provides funds given out to citizens as a loan. This investment involves receiving a certain part of the percentage of the payment. This type of investment is mainly carried out for several years.

Investments can also be made in the authorized capital of partnerships. They represent an organizational and legal form. The latter allows you to get capital sufficient to start a business by summing up the funds contributed by the co-founder. Accordingly, the investor will receive a percentage of the partnership's profits.

The income is distributed among the co-founders in accordance with the amount of capital contributed by each of them. Long-term investment in communities allows you to run your business productively. The profit will have to wait for more than one year. However, this depends on the specific case.

What values ​​are not considered financial investments?

It should be noted that financial investments are not:

• Own shares, which were purchased by a shareholder of the company for the purpose of their cancellation or resale.
• Bills of exchange received by the seller organization from the issuing company in the course of settlement for services rendered, products provided or work performed.
• Investments in property presented in material form by the company. At the same time, only temporary use is available for the purpose of making a profit.
• Works of art, precious metals and similar items that are purchased to generate income.

If the listed values ​​are purchased, the investor cannot accept them as financial investments.

Actual costs of purchasing assets

Assets that represent cash, financial investments or other values ​​require the following actual costs to acquire:

• The amounts that are paid to the seller in accordance with the concluded agreement.
• Costs related to payment of the provided consulting and information services related to the purchase of assets. Their cost relates to the financial performance of a for-profit organization, and of a non-profit organization to increased costs. The accounting period during which a decision was made to purchase financial investments is taken into account.
• Fees that were paid to the person or company that completed the asset purchase assignment.

It is worth noting that long-term financial investments do not include costs similar to those listed above, aimed at the acquisition process.

Financial investments in financial statements

The following information is subject to disclosure, taking into account the requirement of materiality in the financial statements:

• The method according to which financial investments are assessed in the balance sheet at their disposal.
• Consequences of the change in the method of the corresponding valuation.
• The price of financial investments, which determines their current market value.
• The difference between the indicators that the assessment of financial investments helped to obtain and the current market value.
• The difference between the initial and par value when purchasing debt securities over their maturity.
• The type and price of the deposit, which is encumbered with a pledge.
• The type and price of retired securities after their transfer to another person or company through a free transaction.
• Information about the reserve of deposits for depreciation, indicating its type, size and amount.
• Information about loans and debt securities granted. Such financial investments in the balance sheet must be displayed without fail.

All the necessary information should be provided in the reporting in a timely manner in order to avoid violation of the law.

Conditions for accepting assets for accounting

To take into account financial investments, the following conditions must be met without fail:

• Availability of reliable documents with correct execution, which testify to the existence of the company's rights to make deposits and receive assets.
• Organization of financial risks associated with financial investments.
• Long-term financial investments must be able to bring economic benefits to the company. It is expressed in the form of dividends, interest, or value gains.

If all of the above factors are present, it is possible to make accounting for assets of this type.

Financial investment analysis tasks

Assessment of financial investments is aimed at solving the following tasks:

• Assessment of the effectiveness of investments.
• Analysis of the structure and composition of financial investments.
• Determination of their direction.
• Analysis of funding sources for assets of this type.

To carry out accounting of deposits in the Chart of Accounts, an active inventory account 58 is used, for which the following accounts are opened:

• Debt securities.
• Shares and shares.
• Loans granted.

Devaluation of financial investments

A depreciation of an investment is a significant and sustained decline in its value. The estimated cost is the difference determined between the book value and the amount of reduction in the value of financial investments. This indicator should be determined by those deposits for which the market value is not calculated. The depreciation of long-term financial investments is characterized by the following conditions:

• The carrying amount of the investment is significantly higher than the estimated value at the reporting date.
• The estimated investment value has been reduced during the reporting period.
• There is no likelihood of a significant increase in the estimated cost.

Signs of depreciation of financial investments

Depreciation of assets most often occurs when the company, which are the issuers of securities, signs of bankruptcy. It is also possible when carrying out transactions for the purchase and sale of securities at a price that is less than their real value. The depreciation will be significantly affected if sources of long-term investment do not generate income, and also if it is significantly reduced.

If such conditions exist, the company should perform a review to determine whether there are signs of sustained asset depreciation. If the fact of impairment is confirmed by verification, the organization must create a special reserve between the accounting and estimated values.

Reflection of the allowance for impairment of investments in the financial statements

The formed reserve must be reflected in the debit of account 91. Account 59 is specially designated for the loan for it. In this case, its amount is used to form the value of financial investments in the balance sheet. It is the difference between the book value and the provision made. At the same time, the considered reserve allows you to cover the resulting losses on operations with assets.

The composition of long-term financial investments should be checked by the organization for depreciation at least once a year (if the above signs are present). The amount of the formed reserve should be increased if the audit reveals a high probability of a decrease in the estimated value of the investment.

To reflect generalized information about investments and deposits that organizations make in securities, they use account 58. In the article we will talk about the basic rules for using this account, and also consider in detail examples of reflecting transactions on account 58.

Account 58 in accounting: features of use

Account 58 is used by enterprises to reflect and analyze the amounts of investments and deposits in bonds, stocks, securities (both other organizations and government). When making a deposit, its amount is held at Debit 58, when it is written off - at Credit 58. Analytical accounting for account 58 is organized in the context of the types of operations reflected on it (shares, debt loans, deposits, coupon bonds, etc.).

Consider typical postings: (click to expand)

Account 58: account transactions by examples

In order to clearly understand all aspects of accounting for account 58, we use examples.

Account 58. Operations with the provision of loans

According to the agreement concluded on 01.08.2015, Spectr JSC provides Etude LLC with a loan on the following conditions:

• loan amount - 1,415,300 rubles;
• the term for the refund is 11/30/2015;
• interest for the use of borrowed funds - 28% per annum.

On the basis of the agreement, the accountant of Spektr JSC reflected the following operations:

Account 58. Accounting for bonds with coupon yield

Hidden text

• par value - 1241 rubles;
• purchase price - 1315 rubles.

The issuer of the bond is Megapolis JSC.

This bond is to receive two coupon payments, each of which is 15% of the bond value at par (1240 rubles * 15% = 186 rubles).

The accountant of Stolitsa JSC carried out the following operations in the accounting:

If the agreement provided for the purchase of bonds at a price of 1063 rubles, then the entries in the accounting of Stolitsa JSC would be as follows:

Account 58. Placement of foreign currency deposit

09/12/2015 between JSC "Kvartal" and Bank "Stolichny" concluded an agreement for the placement of a deposit:

• deposit amount - $ 54.300;
• placement period - 2 months;
• interest rate - 9.5% per annum.

The notional exchange rate of the US dollar was:

• as of 12.09.2015 - 61.47 rubles / dollar USA;
• as of September 30, 2015 - 61.72 rubles / dollar USA;
• as of 31.10.2015 - 61.66 rubles / dollar USA;
• as of 11/12/2015 - 61.22 rubles / dollar USA.

The accountant of Kvartal JSC reflected in the accounting the following entries:

Account 58. Accounting for transactions with bills

As of November 1, 2015, the debt of Revenge JSC to the heat energy supplier Teplovik amounted to RUB 12.954, VAT RUB 1.976. In November 2015, JSC “Revenge” purchased a promissory note from “Teplovik” at a price of 9.340 rubles. (par value - RUB 12.954). The promissory note was purchased to repay the debt of JSC “Revenge” to the company “Teplovik”, which was done on 30.11.2015.

The accountant of JSC "Revenge" made the following entries in the accounting:

American psychologists argue that successful people are more inclined towards savings. This means that they do not immediately spend all the capital, but invest in it in some form that allows them to regularly make a profit.

Competent investment activity allows you to choose reliable places, taking into account the conditions: terms, interest, number of payments.

Since the market is replete with various offers that are maximally loyal to the client, it is worth understanding their reliability and choosing several for the purpose of diversification in order to maximize the amount of passive profit. Basically, they are aimed at making a profit for the investor, but for the company they are a good help and the opportunity to "roll" money.

I am convinced that in order to spend more, you need to not only accumulate more, you need to rationally distribute your capital. Which financial investments today are distinguished by liquidity, and which, although they attract with huge interest rates, cannot boast of "survivability", it is important to take into account even at the initial stage in order to minimize the risks of losses.

Considering this question, a fairly broad answer can be given. In order to reveal the essence of the concept as easily as possible, let's say this: financial investments are the same investments in securities, capital of organizations or the provision of a loan. Of course, the main task is to make a profit.

For those potential investors who choose investment management with the help of specialists, the diversity of the process can be a defining moment when the question arises - where to invest money so that they work. Do not forget about diversification, because the more "baskets where eggs are stored, the more whole they will be."

They often talk about various participants in financial investments, and immediately an image of a kind policeman arises in my thoughts, who has huge sums of money and is ready to invest it in various projects. In fact, the fate of each of us depends on the correct choice of investments, regardless of how many rubles or dollars we are ready to invest in 1, 2 or even 10 projects.

Director of the branch of the investment company BCS Premier1 Ilya Roshchupkin says that before the holidays, as well as in the pre-holiday season, there is an increase in the financial literacy of the population in relation to potential deposits. More and more attractive new projects are being considered, options for investment are being selected.

In his opinion, “Financial investments should start with specific tasks and formulated goals that have a positive effect on the result. Money will only work more efficiently when you decide how much, how and for how long it will work ”.

And in order to find the right moment, you should pay attention to the most popular types and determine what suits you today and what can be considered after some time.

There are so many different classifications today that it is sometimes even difficult to dwell on something specific. I suggest you pay attention to 3 main groups, and let's start with the classification according to the purpose. There are 2 types of attachments:

• The main goal is to make a profit;
• The main goal is resale.

In fact, the second point also has the goal of making a profit, but the turnover and speed of transactions are more taken into account. Of course, financial investments can be short-term (up to 12 months) and long-term.

And I will also dwell on the classification according to the connection with the authorized capital. Believe it or not, there are also 2 varieties of them:

• Investment in debt securities;
• Directly the formation of the authorized capital.

Authorized capital

This method is most optimal for investors who have already identified the main directions for their future work. If you want to become an accomplice in the organization, then use your funds as additional capital for creation or reorganization. You can also invest in capital in order to buy shares on the secondary market, and then sell them with the help of brokers or by independent efforts.

Part of the capital can also be received while a particular company is withdrawn from the state fund and privatized. According to the legislative framework, financial investments in the authorized capital are possible in the case of cooperation with OJSC and CJSC, as well as with LLC. The main feature is that the investor wants to take part in the work of the company, to influence decisions, and such an operation is quite long-term. If you are attracted to short-term projects, look at buying stocks.

Securities

Who among us did not want to become a major shareholder of any company, or even get a controlling stake. Today, investments in shares are attracted by the right to control the activities of the company and by the fact that with the help of brokers they can be profitably sold on the stock exchange, after waiting for the maximum spread.

Plus, a competent investor evaluates his cash flow and monitors the regularity of passive income. And the more sources of it, the lower the risks. That is why the securities of domestic and foreign companies do not lose their popularity and, in most cases, liquidity. And it is quite simple to buy shares, and what is good news is legal. Equal account, as well as opening a depot in banks.

Deposits

We recall the advice of the cinematic hero, who recommended that we keep our money in savings banks. We often use wishes, but at the same time not so much with the aim of preserving property, but with the aim of increasing profits. Considering that it is the main tool for making a profit on the deposit, the following subspecies are distinguished:

• Monetary (national and foreign currency). National currency interest rates are always higher due to high inflation.
• Associated with precious metals (ingots), but along with them investment coins are gaining special popularity.

First, it is profitable and safe to store them in cells; secondly, you can make money on the course. Thirdly, sometimes you can enter the antique market. It is also attractive that deposits are available for investors with different amounts for investment. And they are waiting for their potential partners, both state and private banks. And how they offer to keep records of your funds - the question is open.

Typically, these operations are handled by an accountant or your personal financial advisor. Of course, if you wish, you can delve into accounting in order to do it yourself. I will clarify right away that we are talking about professional accounting, but every competent investor counts his profits and losses.

And here is what can be recommended for beginners in financial investments: initially, deal with the regularity and size of charges. This will allow you to control passive income and, accordingly, your expenses. Each of the types has its own legislative subtleties, depending on what you have chosen as a priority.

Accounting in authorized capital

It is made on account 06 and refers to long-term financial investments. Do not think that you can invest in the authorized capital directly with money, because even at the stage of negotiations, the parties agree on methods. The difference between the initial and market value of investments is indicated in certain columns.

Intangible assets must also be included in the accounting. According to the legislative specifics, dividend payments are taxed. Remember that your funds can go to the main or reserve capital.

During the preparation of accounting, current and foreign currency accounts are taken into account. If possible, the investor acquires the maximum share in the capital, thereby expanding his portfolio investments. It is also necessary to keep bookkeeping in the case of working with securities.

Securities accounting

This is interesting not only for a private investor, but also for a legal entity if it wants to acquire a stake in any organization. From an accounting point of view, the calculations are entered into accounts 08 "Capital investments". Do not forget to mention the position of the actual value of the shares in the accounting.

It is also worthwhile to understand that the moment is necessarily fixed: shares were bought from credit or fixed assets. If you are an investor in an international company and receive dividends in foreign currency, then the received amounts are transferred to the national one at the rate of the National Bank on the day of receipt. The fundamental point is the difference between debit and credit turnovers - this is precisely the size of your profit from the sale of shares.

Accounting in deposits

Typically, your partner in this process is a public or private bank. The main points that are introduced at the initial stage of filling out the documentation:

• The date of opening the account (and here is such a trick - the bank begins to calculate the interest on the deposit the next day from the moment of opening, and on the loan - on this very day).
• Interest rate (for the national currency is an order of magnitude higher due to high inflation);
• Contribution size;
• Currency;
• Term;
• The method of calculating interest is simple or complex.

Sometimes payment terms are also made - monthly or at the end of a certain period. Today this segment of the financial system offers both short and long term options.

Short-term financial investments

Choosing this option, the investor automatically solves 2 tasks:

• Protect funds from inflation as much as possible;
• Get some profit.

Since this type of investment is highly liquid, it is often equated with deferred tax assets, as well as ready-made funds for payment.

A well-thought-out financial management strategy can be based on working with commercial structures, as well as the government, for example, if you want to buy bonds or bills from it. This method of investment has established itself as quite reliable when it comes to the domestic economy of the country and work with domestic partners.

They have less liquidity, but at the same time they are characterized by minimization of risks - the longer the period - there are more chances to work on the difference in rates, wait for the price increase, etc. As a rule, their segment includes stock documents, statutory funds, deposits in banks for a period of more than 1 year.

Sometimes it is customary to allocate social investments. This is a waste of training, development and economic support of any project, because it is not known when the contribution will "shoot". But at the same time, the thought of the rational use of assets consoles the soul. In the process of summing up the results for a certain period, accounts receivable are taken into account. Sometimes it happens that from long-term, investments move to the rank of short-term, and vice versa under the influence of certain factors.

Financial investments are aimed at making a profit. Since there is plenty to choose from, I recommend assessing the liquidity and risks of each project, and if it is difficult to cope with this on your own, then call professionals for help. Remember that when buying shares, you need to understand to whom and for how much it is profitable to sell them; by investing in the statutory fund of the company, that you take on estimated obligations, for example, pay vacation pay to employees; in deposits - that changes in interest rates can be made.

Most financial experts agree that financial investments should not include borrowed funds; let it be loans from a bank, pawnshop or close friends. Other people's money is not inclined to bring its own profit. But if you want to make a profit in the crypt without any investment, then you should adopt the ICO bounty program. The algorithm for where to start receiving tokens is already on my blog.

And I wish you only rational and effective financial investments at different stages, which provide constant passive profit.