What are the subjects of short-term foreign investment?
Foreign short-term investment belongs to asset accounting. This subject belongs to the old accounting standards, and the new accounting standards will bring it into the accounting of transactional financial assets. Short-term investment refers to investments that can be converted into cash at any time and are not prepared to be held for more than one year, including various stocks, bonds and funds. Its characteristics are short holding time and easy implementation.
How to deal with the accounts of short-term investments?
(1) Enterprises purchase various stocks, bonds, funds, etc. Short-term investment, according to the actual purchase price and related taxes and fees paid, debit the subject and credit the subject of "bank deposit". When an enterprise purchases stocks, the actual purchase price includes declared but undistributed cash dividends, it shall debit the account according to the amount of the actually paid purchase price and related taxes deducted from the declared but undistributed cash dividends, debit the account of "dividends receivable" according to the cash dividends receivable, and credit the account of "bank deposits" according to the actually paid purchase price and related taxes. When an enterprise purchases bonds, if the actual purchase price includes the interest on bonds that have not been received due, it shall debit the account according to the amount of the actual purchase price after deducting the interest on bonds that have not been received due and related taxes, debit the account of interest receivable according to the interest on bonds receivable, and credit the account of bank deposit according to the actual purchase price and related taxes.
(2) During the holding period of short-term investment, the cash dividend declared by the investee shall be debited to the subject of "Dividend Receivable" and credited to the subject of "Investment Income". On the debtor's interest payable date, according to the interest income calculated by coupon rate who pays interest in installments and repays the principal at one time, debit the account of "interest receivable" and credit the account of "investment income".
(3) When selling short-term investments, debit the account of "bank deposit" or "cash on hand" according to the actually received sale price, credit the account of short-term investments according to the book balance, credit the account of "dividend receivable" or "interest receivable" according to the cash dividends or bond interest not yet received, and credit or debit the account of "investment income" according to the difference.