Investments in shares.



Companies may wish to use the surplus funds which have invested to purchase stocks, bonds or other things and make profit in the short term.

The accounting treatment for short-term investment in the stocks
first restrictions buying stocks:
Companies are in the investment of surplus funds to purchase stocks and sell them for a profit, the profit equal to the difference between the cost of the purchase price of the shares sold in the market, and the cost of purchasing the Arrow Price Buy plus all expenses paid to possess such arrow purchase brokerage commission and other expenses, and is proof of the cost of buying the registration restriction follows:

debtor and creditor statement
xxx from h/short-term investments in stocks
xxx to h/Fund or the World Bank
to purchase shares in cash
ii. restrictions on the sale of stocks:
if the company sold shares or part of dividing the this operation either gain or loss are proven in the books, if the sale price is greater than the cost price and dividing the this process is won Prove the difference, if the sale price is less than the cost of dividing the process loss proved the difference, as follows:

1 sale price lower than the cost (loss): the

debtor and the secured creditor statement
of the securityof
the fund
xxx xxx H/H/losses stock sale
xxx to h/short-term investments in stocks
selling shares at a loss in cash
2 sale price is greater than the cost price (profit): the

debtor and the secured creditor statement
xxx from h/fund
to figuring
xxx h/profits of shares sold
xxx h/short-term investments in stocks
sell stocks profitable cash
thirdly restrictions on the distribution of the profits of the investment in the Stocks:
when exporting company per share distribution of profits, the company stocks purchasers prove profits achieved by the registration restriction follows:

debtor and creditor statement
xxx from h/revenue shares receivable
xxx to h/revenue distribution of
income shares The shares receivable
upon receipt of profits recorded restriction follows:

debtor and creditor statement
xxx from h/Fund or the World Bank
xxx to h/revenue shares receivable
receipt of profit distributions in cash
iv assessment of short-term stock inventory:
At the end of the financial year in the preparation of the financial statements, the company shares the remaining inventory of short-term, there are two ways to assess the stocks in the list of the financial center, namely: the

offer shares and the fair market value of the
base cost or market, whichever is less than
1 Fair market value stocks offer:
At the end of the financial period be short-term stock offering fair market value, where the comparison of total shares purchased at cost with the total market price and recording the value of difference, if the market price of the stock than the cost price, this means there are likely to be won Prove the registration restriction follows:

debtor and creditor statement
xxx from h/short-term investments in stocks
xxx to h/potential earnings
potential earnings
potential earnings show in the income list
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