Accounting entries for write-off of long-term equity investment
I. The specific accounting treatment for the transfer and write-off of long-term equity investment of public institutions is as follows:
If there is conclusive evidence that the long-term equity investment has suffered losses due to the bankruptcy and liquidation of the invested entity, the institution shall report it for approval and write it off in accordance with the regulations.
1. When the long-term equity investment to be written off is transferred to the assets to be disposed of:
Debit: loss and surplus of assets to be disposed of (according to the book balance of long-term equity investment to be written off)
Loan: long-term equity investment
2. When the report is approved for write-off:
Borrow: non-current assets fund-long-term investment
Loan: loss and surplus of assets to be disposed of.
Two, for long-term equity investment companies, to carry out the necessary liquidation of the company's accounts.
Because the loss disposal of long-term equity investment can only be written off after approval according to the regulations, it needs a process. The loss of long-term equity investment should be accounted by the account of "profit and loss of assets to be disposed of", which is regarded as two accounting treatments and does not need to be directly confirmed.
What is long-term equity investment?
Long-term equity investment 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. Obtain economic benefits and bear corresponding risks.