Long-term financial investments are investments in various non-current assets that contain financial assets. This form of investment is classified according to certain characteristics.
The tasks of accounting in the implementation of long-term investments can be presented in the form of:
- full, reliable and timely reflection of all expenses for constructed facilities in the context of their types, as well as the classification of these objects;
- ensuring control over construction management, as well as meeting deadlines for the commissioning of production facilities and other fixed assets;
- правильного расчета инвентарной стоимости acquired or created independently fixed assets, as well as intangible assets. This also includes objects of environmental management (for example, land);
- implementation of control functions for the use of financing for long-term investments.
Long-term financial investments should be taken into account by accountants at historical cost and already upon the transfer of funds:
- as a whole on construction and on its separate objects (in a section of buildings and constructions);
- for individual objects of fixed assets, land, intangible assets and environmental facilities.
The classification of financial investments can be represented as follows:
- participation in the formation of the authorized capital of other enterprises (organizations), as well as in the creation of subsidiaries;
- Municipal government securities;
- promissory notes, stocks and other securities of enterprises and organizations (here you can also include debt);
- provided borrowed funds;
- deposits on deposits;
- other long-term financial investments.
The following actual expenses are accepted as financial investments for the acquisition of various assets:
- the amounts paid for the contract with the seller;
- amounts paid to enterprises, organizationsfor consulting or information services related to the acquisition of these assets. In the case of the availability of information and consulting services that were aimed at the actual implementation of financial investments, and at the same time the organization does not take such a decision, these expenses should be charged to operating expenses;
- paid remuneration to intermediaries whose services contributed to the financial investment.
На долгосрочные финансовые вложения фактически the costs incurred by the organization may decrease (or increase) in the amount of exchange difference that is valid at the time of the said operation when it is acquired in any other currency other than the ruble. However, in fact, the posting is done in rubles in accounting.
Существуют нюансы учета фактических затрат при investment of the enterprise’s finances in the assets of any other joint-stock company. So, if these shares are quoted at an auction or stock exchange, and such a quote is constantly published, then the accountant should reflect in the annual financial statements (in particular, the balance sheet) these investments at market value if this value is lower than the balance sheet. And the difference is adjusted by the amount of the reserve, which is formed at the end of each year for the next of the financial results.
Long-term financial investments associated withhigh risk of loss of funds by the company, therefore, enterprises in order to address this issue must be specialists in this field and relevant analysts for continuous monitoring of information in this area.
So, the main analytical objectives of financial investments include:
- analysis of the direction of long-term financial investments of the company;
- analysis of their structure and main components;
- analysis of the source of funding for future investments;
- evaluation of the effectiveness of this form of investment for a long term.
