Where investments should go in financial statements?

SUUZT

Where investments should go in financial statements?

BenA

I have just taken my financial statements exam and never came across an answer in the way you have worded yours but what I am guessing you are referring to is that someone has invested in a company and how is this recorded? If I am understanding your question correctly, the funds raised will increase the share capital under equity.

SandyHood

If you mean investments made by the company, for example the company has bought shares in an other company then show them in non current assets. I would call them financial investments. They should be valued at fair value.

If you mean an investment in another company, and the holding is sufficient to classify the other company as a subsidiary or an associate you should do different things depending on whether you are looking at the parent company's own accounts or the accounts of the group as a whole.

The company's own accounts
Show the value of the investments within the non current assets
The group accounts
For the subsidiary - when you consolidate you remove the value of the investment so that the group accounts show the total assets and total liabilities of the parent and all the subsidiaries together.
For the associate - show the value of the investment as a single line on the Sof FP just below the other NCAs