A.
Long Term
Investments
Long-term investments are planting some property of a company in another company in order to obtain a fixed income and or to master or control the company.
Shelf-term investments can be:
1. Inclusion in the form of shares, obigasi, and other securities.
2. Funds to pay off long-term debt, or other special funds.
3. Other assets, such as the purchase of land use plans in the future.
There are several types of investments that can be
evidenced by certificates or other similar documents. The nature of an
investment Dapa tberupa debt, other than short-term debt or commercial debt, or
equity instruments. In general have the right financial investment, such as
intangible investment land, buildings, gold, diamond, or other commodities that
can dipasarkan.Untuk some kind of investment, there is an active market that
can shape the market value. For this type of investment is used as an indicator
of market value determination of fair value.
As for the
investment that has no active market, other means are used to determine the
value of basic wajar.Atas throughout the above description it can finally be
concluded that the nature of long-term investments are:
a.
Part of the assets of the company,
b.
On the basis of
embedded throughout the above description it can eventually concluded
that long-term nature
of investments are:
a) Part of the company's assets,
b) Implanted in some form,
c) Intended for profit / increase wealth or for other purposes.
d) Within a period of more than one year.
a) Part of the company's assets,
b) Implanted in some form,
c) Intended for profit / increase wealth or for other purposes.
d) Within a period of more than one year.
Long-Term Investment Objective:
1.
To obtain a fixed income in each
period, such as interest, royalties, dividends, or rents, and others.
2.
To establish a special fund, for
example, funding for the expansion of interest, social interest.
3.
To control or control of another
company, through its majority ownership of the company's equity.
4.
To ensure the availability of raw
materials and a market for the products produced.
5.
To reduce competition among similar
companies.
6.
To maintain the relationship between
the companies.
Forms of Long-Term Investments
There are many options for companies to establish long-term investments. There are companies who choose to invest in land or buildings (not for the operation of the company) is called with property investment. There also are choosing an investment in savings or time deposits, or other investment options, namely the purchase of stocks or bonds.
Long-term investments can be made firm in the form of
bonds or stock. When compared, the two forms of investment has advantages and
disadvantages. Long-term investments in bonds to give a definite assurance of
the acceptance rate for a certain period. If the interest rate on the market
declined, interest rates have not changed since the interest rate is specified
in the initial agreement. On the other hand, long-term investment in stocks
will provide higher income than interest rates, if the company gets high
returns and vice versa.
B. Investment in Shares
Investment in shares is the purchase / investment / ownership of other companies in order to earn income in the form of dividends. Other advantages can include management control, namely the right to determine the policy of the company 'bought. Management control is obtained if a majority shareholding to achieve goals. Equity investment firm which is called the parent company, the company that issued the stock while the company called the child, the two so-called affiliated companies.
C. Investments in Bonds
Bonds is a letter of loan money will be repaid after a certain period of time. Bonds generally provide a fixed amount of interest income to investors. Sometimes bonds also have a right to benefit sharing. If accepted by the bondholders in the form of, with rekarakterisasoi as dividends, the profits it received no tax dikenakkan. However, the payer and the direkarakterisasi as a dividend is not a cost-reducing revenue.
Because at the time of maturity, the bonds will be
paid (returned) number of par, premium bond is a loss for investors and vice
versa discount as income. The opposite applies to the company issuing the bond.
In commercial accounting practices, with the premium and discount (discount)
bond, investors are effectively earning interest that is different from the
nominal interest rate. It requires the calculation of effective interest amortization
of premium and discount as a correction to the book value of bonds.
Aimed at
obtaining fixed rate each year during the investment period. Walking &
Amortization Interest Adjustment:
·
Journal of adjustments to the
interest which has not been received if the date is not exact interest rate on
the date the end of accounting period
·
Journal of adjustment to the
amortization of premium or discount, if the bond is purchased at a price above
or below the nominal value.
Investment Sales:
·
Difference in sale price and book
value of investments in bonds are recognized as gains and losses on the
contrary as
·
When selling, Cash increased by a
net selling price plus interest (if any), are investing in bonds is reduced
D. Investment in Other Securities
In addition to stocks and bonds, companies can invest in other securities such as commercial slips. Listing on the investment in a commercial script that is similar to bonds. The small difference with the possibility of a discount on the type of securities it. Discount is treated as income of the holder of a commercial script that will be realized when payment slips that.
E. Investment in the Fund
Companies because of necessity (according to contract) or voluntarily set aside each year to a fund within a certain amount. The fund can be established for example for the repayment of debt (bonds), preferred stock or asset purchase. In connection with the tax provisions, for example with the establishment of funds (reserves) reclamation of mining companies whose funds must be deposited in state banks. Furthermore, the fund can be administered alone or transferred to third parties.
Investment funds that can provide results for the
company, for example in the form of interest (from the deposits and other
savings), dividends (stocks), and rents (of property).
F. Investment in Other Assets
The Company may invest in other assets, such as land and buildings or property. In addition because there are excess funds, the investment was intended for purposes of future expansion. Investment income is generally taxable as income. So is the profit if the investment is sold.
Conclusion
Investment securities are increasingly becoming an important option in the consideration of investment, of course, with the outbreak of the capital market. Moreover with lower interest rates for money market can cause people to turn to capital markets. According to the mean, investing in stocks can be for the purpose of short-term or long-term goals.
For some companies, investment activity is an important element of our operation, and assessment of company performance may be largely, or entirely dependent on the results reported on this activity.
Some companies make investments as a way to put the
excess funds and several other companies make investments to strengthen trade
relations benefit the business or get a trade.
Source:
Dr.. Gunadi,
M.Sc., Akt .. Of 1997. Tax Accounting. New York: Scholastic Widiasarana Indonesia.
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