Long-term investment refers to the foreign investment that the enterprise is not ready to realize at any time and holds for more than 1 year. The reason why long-term investment is different from short-term investment lies not only in the length of investment period, but also in the difference of investment purpose.
According to its nature, long-term investment can be divided into long-term stock investment, long-term bond investment and other long-term investments. Long-term stock investment is to buy and hold common shares and preferred shares of other companies. When it is obtained in cash, it is based on the estimated cost (including purchase price, commission and tax, etc.) at the time of acquisition. ); If it is obtained by non-cash transaction, it shall be priced according to the fair market price of the traded goods or the obtained stocks.