Issues of income and expenditure accounting caused by financial investments revaluation

Abstract

Introduction. The nature of financial investments as an object of accounting is investigated. The procedure of financial investments revaluation is highlighted. Its importance for reducing the carrying amount of such assets to fair value is shown. Arrangement of results of financial investments revaluation in the accounting system is presented. The method of income and expenditure accounting, which is caused by financial investments revaluation, is proposed.

Purpose. The aim of the research is to study the current practice of income and expenditure accounting, which are caused by revaluation of financial investments purchased in exchange for corporate rights.

Method (methodology). In the process of research a number of scientific methods, including method of comparison, method of grouping, method of analysis and synthesis, has been used.

Results. The article summarizes the scientific approaches to the nature of financial investments. Recommendations on improving income and expenditure accounting caused by revaluation of financial investments are developed for the purpose of reliable arrangement of the investment activity results in reports and adoption of balanced and sensible management decisions.