Short-term financial investments referred to in the assets for a period not exceeding one year.
These are mainly investments in marketable securities - bonds, stocks, and certificates of deposit.
Types of investments
In the book through financial investments (through 58) includes the following sub-accounts:
- Shares and shares (contributions to the charter capital of other companies and purchase of shares) -
- debt securities-
- Loans, deposits under the contractsimple partnership (including in subsidiaries), as well as other investments (right of claim to the receivables, short-term securities, etc.).
All financial investments can not be classifiedonly by type, but also on the investment maturity. In the latter case, distinguish long-term and short-term investments. This division is necessary to assess the carrying value of investments.
The long-term investments relate to the repayment term (use) more than a year. Usually included in their composition of investments in the authorized capital of other companies, loans, purchase of shares and bonds.
The number of short-term investments included in assetswith a term of less than one year of use. This, for example, invest in securities that can be easily re-sell for additional income, or loans which were given less than a year. Moreover, in a number of short-term investments in securities include not only those who planned to repay within a year, but also those which are supposed to receive income in the current period.
Term of use investment organizationdefines itself based on the investment objectives, unless otherwise provided in the accompanying documents (contracts, bonds with specified maturity, and so on.).
Kinds and purpose of short-term financial investments
Short-term investments carried out in thefor profit from the sale of securities on the stock exchange, as well as efficient scrolling temporarily free money. Before embarking on such an investment is carried out a preliminary assessment of their economic feasibility.
With this category of assets is estimated liquidity organizations. Short-term investments, along with money are highly liquid assets.
As a rule, in the structure of Russian companies' assets share of that is attributable to financial investments is low. This is due to shortage of working capital for investment.
The most common type of short-termfinancial investment - the purchase of securities, as well as short-term loans to other organizations. There are also a category of other short-term investments. These include advances paid, the cost of payment products and other expenses actually paid but pertaining to future periods (for example, an advance lease). Short-term investments may be made in the form of certificates of deposit at the Bank purchases or third party.
Financial investments are not your ownthe company's shares (treasury society back from shareholders) - bills that are issued by the buyer for the goods sold (services rendered) - investments in real estate, as well as in fixed assets, intangible assets or reserves.