long term investment

Tiara eka pramono 232090303EB 19LONG-TERM INVESTMENTSA. Long Term InvestmentsLong-term investments are planting some property of a company in another company in order to obtain a fixed income and or to master or control the company.Shelf-term investments can be:A. Inclusion in the form of shares, obigasi, and other securities.2. Funds to pay off long-term debt, or other special funds.3. Other assets,such as the purchase of land use plans in the future.There are several typef of investments that can be evidenced by certificates or similar documents. The mature  of an investments can be debt, other than short-term debt or commercial debt, or equity instruments. In general have the right financial investments, such as intangible invesment  land, buildings, gold diamond, or other commodities that can marketed. Some kind of investment, there is an active market that can shape the market value. For this type o f investment is used as an indicator of market value determination of fair value.As for the investment that has no active market, other means are used to determine the value of basic natural. throughout the above description it can finally be concluded that the nature of long-term investments are:a. Part of the assets of the company,b. Implanted over basis throughout the above description it can eventuallyconcluded that long-term nature of investments are:a) Part of the company's assets,b) Implanted in some form,c) Intended for profit / increase wealth orfor other purposes.d) Within a period of more than one year.Long-Term Investment Objective:A. To obtain a fixed income in each period, such as interest, royalties, dividends, or rents, and others.2. To establish a special fund, for example, funding for the expansion of interest, social interest.3. To control or control of another company, through its majority ownership of the company's equity.4. To ensure the availability of raw materials and a market for the products produced.5. To reduce competition among similar companies.6. To maintain the relationship between the companies.Forms of Long-Term InvestmentsThere are many options for companies to establish long-term investments. There are companies who choose to invest in land or buildings (not for the operation of the company) is called with property investment. There also are choosing an investment in savings or time deposits, or other investment options, namely the purchase of stocks or bonds.Long-term investments can be made firm in the form of bonds or stock. When compared, the two forms of investment has advantages and disadvantages. Long-term investments in bonds to give a definite assurance of the acceptance rate for a certain period. If the interest rate on the market declined, interest rates have not changed since the interest rate is specified in the initial agreement. On the other hand, long-term investment in stocks will provide higher income than interest rates, if the company gets high returns and vice versa.B. Investment in SharesInvestment in shares is the purchase / investment / ownership of other companies in order to earn income in the form of dividends. Other advantages can include management control, namely the right to determine the policy of the company 'bought. Management control is obtained if a majority shareholding to achieve goals. Equity investment firm which is called the parent company, the company that issued the stock while the company called the child, the two so-called affiliated companies.C. Investments in BondsBonds is a letter of loan money will be repaid after a certain period of time. Bonds generally provide a fixed amount of interest income to investors. Sometimes bonds also have a right to benefit sharing. If accepted by the bondholders in the form of, with as dividends, the profits it received no tax. However, the payer and the as a dividend is not a cost-reducing revenue.Because at the time of maturity, the bonds will be paid (returned) number of par, premium bond is a loss for investors and vice versa discount as income. The opposite applies to the company issuing the bond. In commercial accounting practices, with the premium and discount (discount) bond, investors are effectively earning interest that is different from the nominal interest rate. It requires the calculation of effective interest amortization of premium and discount as a correction to the book value of bonds.Aimed at obtaining fixed rate each year during the investment period. Walking & Amortization Interest Adjustment:• Journal of adjustments to the interest which has not been received if the date is not exact interest rate on the date the end of accounting period• Journal of adjustment to the amortization of premium or discount, if the bond is purchased at a price above or below the nominal value.Investment Sales:• Difference in sale price and book value of investments in bonds are recognized as gains and losses on the contrary as• When selling, Cash increased by a net selling price plus interest (if any), are investing in bonds is reducedD. Investment in Other SecuritiesIn addition to stocks and bonds, companies can invest in other securities such as commercial slips. Listing on the investment in a commercial script that is similar to bonds. The small difference with the possibility of a discount on the type of securities it. Discount is treated as income of the holder of a commercial script that will be realized when payment slips that.E. Investment in the FundCompanies because of necessity (according to contract) or voluntarily set aside each year to a fund within a certain amount. The fund can be established for example for the repayment of debt (bonds), preferred stock or asset purchase. In connection with the tax provisions, for example with the establishment of funds (reserves) reclamation of mining companies whose funds must be deposited in state banks. Furthermore, the fund can be administered alone or transferred to third parties.Investment funds that can provide results for the company, for example in the form of interest (from the deposits and other savings), dividends (stocks), and rents (of property).F. Investment in Other AssetsThe Company may invest in other assets, such as land and buildings or property. In addition because there are excess funds, the investment was intended for purposes of future expansion. Investment income is generally taxable as income. So is the profit if the investment is sold.http://siswidya.blogspot.com/2011/05/investasi-jangka-panjang-dan-aktiva.html