SHORT TERM INVESTMENTS

Definition of Short-Term Investments

Excess  cash in a company will not create revenue for the excess cash should be invested in submarines during the unused cash. Because the term ka dipkainya watu not there is relatively short, then the investment is also made in the form or in the short term. Short-term investments can be done in the form of deposits, sertefikiat bank or securities - securities that is the stock (equity) and bonds (debt securities)

Setting accounting and reporting of investments in bonds (debt securities) and shares (equity securities) regulated in SFAS. 50. According to the company's GAAP equity investments should be classified into one of the following three groups:

A. Held to maturity (Held to Maturity)
Equity securities purchased and held to maturity should be classified as "held to maturity"

A. Traded (Trading)
Securities purchased and held for resale in the near future should be classified in the "trading". The investment is done with the purpose to look for profit from short-term price differences

A. Available for sale (available for sale)
Securities that are not classified into two groups must dilasifikasikan into the "available for sale"

Next in SFAS. 50 Initial 19 stated that the letter bergarga inbestas entering the "trading" should be listed as aktiba lancer in the balance sheet, while inbestasi included in the "held to maturity" and "available for sale" can be presented in the accounts did not know lancer lancer bedaraskan management decisions. A special for the bonds due soon, should diklompokan lancer in assets.

Registration of Securities – Securities

The letter - which purchased securities in the securities account debited - the amount of securities at cost. Acquisition price is the price of the securities exchange rate plus commission, fees, stamp duty and expenses - other expenses incurred at the time of purchase

Securities valuation

In conjunction with the appraisal letter - securities, SFAS No. 13 states that:

Investment dklasifikasikan lancer should be recorded as assets on the balance sheet at the lower of cost and market value.

Cost (Cost) can be determined based on FIFO, weighted - average, or LIFO. The market value can be determined by portofoio aggregate, in total or by category of investment ataupada individual investments are determined essentially by konsiten

The market value is the amount that can be obtained from the sale of an active market unvestasi

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