Financial investments as an object of accounting: principles and classification

Abstract

The paper intends to develop the methodology of accounting for financial investment to meet the growing information needs of management in decision-making upon investment operations of a company. The results of undertaken research argue that financial investments should be recognized as specific objects of accounting, so different accounting techniques should be applied to different financial investments in order to reflect the economic nature of the investment operations of economic entities. The paper proposes systematized accounting classification of financial investments and justifies the necessity of supplementing investment objects in accordance with recognized groups of securities. Harmonization of legislative regulated typology securities, which are investing objects of stock market, and financial investments classification in accounting as assets, that arise at the enterprise due to his attachments money in securities, allows to bring the financial instruments accounting methodology to the modern features of investment operations national enterprises by developing specific accounting procedures for each group of securities and deepening accounting information about investing money in financial instruments. Results of the study are the ground for further development of theoretical and methodological principles of accounting for investments in growing competition in financial markets.