1. For short-term profitable investment expenditure, it should generally be included in the subject of transactional financial assets, in which transaction expenses are included in the subject of current investment income;
2. Intentional and capable bond investment should generally be included in the held-to-maturity investment subject;
3. Long-term equity investment projects that have a significant impact on other enterprises, or long-term equity investment in joint ventures and subsidiaries shall be included in the long-term equity investment subjects.
General accounting treatment:
Borrow: long-term equity investment
Loan: cash or other assets
Accounting treatment of long-term investment losses;
When investing:
Borrow: Long-term equity investment -X company
Loans: bank deposits
Losses incurred by the Company: (Fill in the amount after actual occurrence)
Borrow: investment income
Loan: impairment reserve for long-term equity investment
Long-term equity investment in stocks refers to obtaining the shares of the invested unit through investment. An enterprise's equity investment in other units is usually regarded as long-term holding, controlling the investee through equity investment, exerting a significant influence on the investee, or establishing a close relationship with the investee to spread business risks. The ultimate goal of long-term equity investment is to obtain greater economic benefits, which can be obtained by sharing profits or dividends or by other means. For example, the products produced by the invested company are the raw materials needed for the production of investment enterprises, and the prices of such raw materials fluctuate greatly in the market, so the supply cannot be guaranteed. In this case, the investing enterprise can control or exert great influence on the invested entity through its shares, so that the raw materials needed for its production can be directly obtained from the invested entity, and the price is relatively stable, ensuring the smooth progress of its production and operation. However, if the invested enterprise is in poor operating condition or goes into bankruptcy liquidation, the invested enterprise as a shareholder also needs to bear the corresponding investment losses.