Long Term Equity Investment Calculated By Equity Method

(1) obtain

Borrowing: long term equity investment - cost

Loan: bank deposit

Note: the initial investment cost of long term equity investment is less than that of the fair value share that the investment unit can recognize the net assets when investing.

And other subjects, according to their differences, credit the "non operating income" subjects.

(two) net profit or occurrence of investment units held during long-term equity investments.

1, 1) calculate the share that should be enjoyed according to the net profit realized by the investment unit.

Borrowing: long-term equity investment - profit and loss adjustment

Loan: investment income

2) net loss occurred.

Borrowing: investment income

Loan: long-term equity investment - profit and loss adjustment

2. When the investment unit announces cash dividends or profits in the future,

Borrower: dividends payable

Loan: long-term equity investment - profit and loss adjustment

3. When the cash dividends declared by the invested unit are received,

Borrow: bank deposit

Loan: dividends payable

(three) other changes in owners' equity during the period of holding long-term equity investments.

Borrowing: long-term equity investment - other equity changes

Loan: capital surplus - other capital reserves

(four) disposal of long term equity investments

Borrow: bank deposit

Loan: long term equity investment - cost

profit and loss adjustment

Other equity changes

Income from investment

At the same time:

Loan: capital surplus - other capital reserves

Loan: investment income

Related links:

(1) determination of initial investment cost of long term equity investment

Calculate initial investment cost:

Stock paction volume

Add: related taxes and fees

Less: declared cash dividend declared

(two) obtaining long-term equity investments

1, borrowing: long-term equity investment

Dividend Receivable

Loan: bank deposit

2. Dividends declared on receipt of the purchase of the shares.

Borrow: bank deposit

Loan: dividends payable

(three)

1. During long-term equity investment, the investment entity announces cash dividends or profits:

Borrower: dividends payable

Loan: investment and theft

2. The amount of net profit allocated by the invested entity before obtaining the investment of the enterprise:

Borrower: dividends payable

Loan: long term equity investment

(four) disposal of long term equity investments

Borrow: bank deposit

Long term equity investment impairment allowance

Loan: long term equity investment

Investment income (or debit)