How To Determine The Entry Cost Of Short-Term Investments

The investment cost of short-term investments refers to the actual payment paid by enterprises when acquiring various stocks, bonds, funds, or the book value of non cash assets.

All kinds of stocks, bonds and funds purchased by an enterprise, including the cash dividends declared but not received in the actual payment, or the interest on bonds that have not been received but have not been drawn, shall be accounted for separately, and do not constitute the cost of investment.

In accordance with the following methods, it is determined that: (1) the short-term investment paid in cash shall be the cost of investment in accordance with the actual amount paid, including taxes, fees and other related expenses.

However, the actual payment price includes the cash dividends declared, but not yet received, or the interest on bonds that have been paid to the interest rate but not yet received. It should be accounted for separately and does not constitute a short-term investment cost.

Cash that has been deposited in a securities company but has not yet been invested for a short period of time shall be treated as other monetary funds. When the actual investment is made, the interest on the bonds that have been declared but not yet received or the interest on the bonds that have been paid to the interest rate but not yet received will be deducted according to the actual payment price or the actual payment price as the short-term investment cost.

(2) the short-term investment invested by investors is determined by the value recognized by the investors as a short-term investment cost.

(3) an enterprise accepts short-term investments made by debtors with non cash assets to repay debts, or short-term investments exchanged for debt receivables, and the related tax and fees that should be paid according to the receivable credit value as short-term investment costs.

If the accepted short-term investments include cash dividends declared but not yet received, or interest on bonds that have not yet been received during the period of interest payment, the amount of the receivable dividends or interest receivable should be deducted according to the book value of the receivable credit, plus the amount of the relevant taxes and fees that should be paid as a short-term investment cost, and the dividends or interest receivable should be accounted for separately.

The actual cost of a short-term investment is determined according to the following provisions: if the premium is received, the premium should be deducted according to the book value of the receivable credit, plus the relevant taxes and fees that should be paid as the short-term investment cost; and if the payment is made, the book value of the debt receivable should be added to the premium and the related taxes and fees that should be paid as the short-term investment cost.

(4) short-term investments in non monetary pactions should be taken as short-term investment costs according to the book value of the assets exchanged and the relevant taxes and fees payable.

Those involved in making up the price shall determine the cost of short-term investments in accordance with the following provisions: 1. When the premium is received, the balance should be deducted according to the book value of the exchanged assets plus the recognised income and the relevant taxes and fees that should be paid, and the balance of the premium should be deducted as the short-term investment cost.