The balance sheet is a financial statement that reflects a companys assets liabilities and equity for the financial year short and long term investments are typically comprised of real estate stocks bonds and investments made towards a companys subsidiaries or affiliate companies. Long term investment assets on a balance sheet are typically assets the company has made to help it sustain a successful and profitable future in comparison current assets are usually liquid assets that are involved in many of the immediate operational activities of the firm. At the acquisition date investment in abcs stock 1200000 usually cash for the stock of the subsidiary balance sheet reflects the rights of non majority shareholders in the assets and liabilities of a company that is consolidated into the accounts of the major. A subsidiary is a company that is controlled by another company that owns 50 or more of its voting stock the controlling company also called the parent company is said to have a controlling interest in the subsidiary this type of parent subsidiary relationship typically comes about as the result of acquisitions or heavy investment by a large corporation in another company. The consolidation method records investment in subsidiary as an asset on the parent companys balances while recording an equal transaction in the equity side of the subsidiarys balance sheet balance sheet the balance sheet is one of the three fundamental financial statements these statements are key to both financial modeling and
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