1. If the long-term equity investment is accounted by the cost method, the enterprise shall debit the subject of "dividends receivable" according to the part of the cash dividends or profits announced by the invested entity that belongs to the enterprise, and credit this subject; The net profit distribution realized by the investee before obtaining the investment shall be credited as the recovery of the investment cost to the subject of "long-term equity investment".

2. Long-term equity investment is accounted for by the equity method. On the balance sheet date, according to the net profit realized or adjusted by the investee, the share should be calculated, and the account of "long-term equity investment-profit and loss adjustment" should be debited and credited to this account.

Extended data:

Investment income includes dividends received from foreign investment and bond interest received, as well as the difference between the amount obtained by recovering investment at maturity or transferring creditor's rights before maturity and the book value.

Investment activities may also suffer losses, such as the difference between the income recovered at maturity or the income transferred before maturity and the book value, which is the investment loss. Investment income minus investment loss is net investment income.

With the increasing management and use power of the funds held by enterprises and the gradual improvement of the capital market, although the gains or losses in investment activities are not obtained by enterprises through their own production or labor supply activities, they are an important part of the total profits of enterprises, and their proportion is increasing.

Baidu encyclopedia-investment income