Can long term equity investment be studied at the end?

Note: Guidance on long-term equity investment.

1.Grab the key words from the question, as long as there is a "purchase date, non-related party, outside the group" unified is not the same control. Since the same control is not the same as the same control, it is very important to distinguish what kind of control it is, and if the judgment is wrong, it may lead to the error of the whole question, so mastering the method and being careful is the key.

2.You can understand that the assets are sold for long-term investment, that is to say, the original assets are sold to be included in the bank deposit, and now it is just the position of the bank deposit for long-term investment.

3.It is recommended to compare and memorize the initial measurement of the same control and the non-same control with the method of drawing, the effect will be very good.

(Recommended reading:Don't take the exam after the age of 35 Isn't it valuable?).

2. Put long-term investment and consolidated financial statements together.

Long-term equity investments and business combinations are covered in Chapter 8 of the textbook, while consolidated financial statements are covered in Chapter 18.

Since long-term equity investment is closely related to business combination and consolidated financial statements, it will be better to study long-term equity investment and business combination before studying consolidated financial statements.

These two chapters are the most difficult parts of accounting, and they are the chapters that can reflect the level of accounting, so it can be said that if these two chapters are studied well, it will be very helpful for passing the "Accounting" exam.

3How to choose the cost method and the equity method?

For the cost method and the equity method, many candidates are not clear, and they feel that the cost will be the cost for a while. Remember to choose the accounting policy according to the type of transaction, in simple terms, the cost method of control is chosen, and the equity method is chosen for everything else. In this way, the long-term investment accounting policy choices can be divided into three categories, namely: (1) control over subsidiaries (cost method), (2) joint control, joint venture investment (equity method), and (3) significant impact on joint venture investment (equity method).

Yes, when learning long-term equity investment, it is easy to get out of a knowledge point, and once you are stuck in a knowledge point for too long, you will lose confidence in yourself and lose the motivation to learn. It must be quite difficult to get in touch with this knowledge point at the beginning, so how to learn better? My advice is to find out the "fish bones" first, and then savor the "fish meat".

"Fish bone" refers to the knowledge framework, familiar with "fish bone" is familiar with the knowledge context of long-term equity investment, "fish meat" refers to the details, know what "fish bone" looks like, then "fish meat" is easier to eat.

Based on my own learning experience, I spent several days combing the "fishbones" for your reference. The "fishbone" of long-term equity investment includes the following five contents: 1. The difference between the equity method and the cost method; 2. Recognition and initial measurement of long-term equity investment; 3. Follow-up measurement of long-term equity investment; 4. Calculation of adjusted net profit under the equity method; 5. Conversion of long-term equity investment; 6. Disposal of long-term equity investment.

Long-term equity investment refers to:

Equity investments held by the enterprise that can exercise control over the investee, i.e., investments in subsidiaries;

Equity investments held by the enterprise that can exercise joint control over the investee together with other joint venture parties (i.e., each shareholder cannot exercise control alone), i.e., investment in the joint venture;

Equity investments held by the enterprise that can exert significant influence on the investee (major shareholders can exercise control, but we also have large voting rights), i.e., investment in associates;

The enterprise does not have control, joint control or significant influence over the investee, and has no equity investment in the active market and the fair value cannot be reliably measured. In addition to the above-mentioned circumstances, other equity investments held by enterprises shall be handled in accordance with the provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.

Its characteristics: Long-term equity investment can be determined to be held for a long time at the time of initial confirmation. The long term here is generally considered to be a period of more than one year;

If the purpose of the equity investment is to exert long-term control, joint control or significant influence over the investee, the equity investment shall be recognized as a long-term equity investment in accordance with relevant regulations, regardless of whether it has an active market and fair value. On the contrary, if the intention of holding is not for the purpose of control or significant influence, it should be recognized as the corresponding financial asset; However, long-term equity investments that do not have ** in an active market and whose fair value cannot be reliably measured should also be recognized as long-term equity investments.

Long-term equity investment refers to the investor's control over the investee (also known as the long-term equity investment formed by the holding merger, the long-term equity investment formed by the enterprise merger, and the investment in the subsidiary), the equity investment with significant impact, and the equity investment in its joint venture.

1) Equity investment in which the investor can exercise control over the investee, i.e., investment in a subsidiary.

Control means that the investor has power over the investee, enjoys variable returns by participating in the relevant activities of the investee, and has the ability to use its power over the investee to influence the amount of its returns.

2) Equity investment in which the investor and other joint venture parties exercise joint control over the investee and have rights to the investee's net assets, i.e., investment in the joint venture.

The suggestion is to find out the "fish bones" first, and then taste the "fish meat". "Fishbone traces" refers to the knowledge framework, familiar with "fishbones" is familiar with the knowledge context of long-term equity investment, "fish" refers to the details, know what "fishbones" look like, then "fish" is easier to eat.

When learning about long-term equity investment, it is easy to get into a knowledge point and not get out, and once you are stuck in a certain knowledge point for too long, you will lose confidence in yourself and lose the motivation to learn. It must be quite difficult to get in touch with this knowledge point at first.

Difference Between Equity Method and Cost Method:

Equity is an asset, and equity assets can be divided into financial assets and long-term equity investments. When measuring long-term equity investment, it is divided into equity method and cost method according to the different rights of the parent company to the holding company.

The cost method measurement can be divided into two situations, one is the measurement of business combination under the same control, and the other is the measurement of business combination under the control of non-Lu Hutong. In these two cases, there is a difference in the initial measurement of long-term equity investment, but there is no difference in subsequent measurement.

Long-term equity investment refers to the acquisition of shares of the investee through investment. An enterprise's equity investment in other entities is usually regarded as long-term holding, and through equity investment to achieve control over the investee, or exert significant influence on the investee, or to establish a close relationship with the investee, so as to diversify the operational risk.

If the investment enterprise no longer has common control or significant chain impact on the investee due to the reduction of investment or other reasons, and there is no ** in the active market, and the fair value cannot be reliably measured, the long-term equity investment shall be accounted for according to the cost method instead, and the carrying amount of the long-term equity investment under the equity method shall be used as the initial investment cost calculated according to the cost method".

Risks and benefits coexist. The ultimate goal of long-term equity investment is to obtain greater economic benefits, which can be obtained through the sharing of profits or dividends, or through other means, such as the products produced by the investee unit are the raw materials required for the production of the investment enterprise, and the raw materials fluctuate greatly in the market and cannot be guaranteed.

In this case, the investment enterprise can exert significant influence on the investee through the control or dismantling of the shares, so that the raw materials required for its production can be obtained directly from the investee, and the travel reform is relatively stable to ensure the smooth progress of its production and operation.

It is helpful for us to learn about long-term equity investment, and the income brought by Bu Zao Bu for long-term equity investment is still very good.

Yes. It can enable us to further grasp the content and information about the best investment, learn relevant professional knowledge, and be more conducive to equity investment.

I think it certainly helps, because finance is so much in our lives that it's always good to learn something.

Long-term equity investment is a difficult chapter in the accounting learning content, and the learning of this chapter is also related to the learning of business combinations and consolidated financial statements to be learned later, so it is very important to master this chapter.

The study of this chapter is different from other chapters, and it is more difficult to understand, which belongs to the so-called high-level knowledge in accounting, so when studying deeply, do not strive to solve it quickly, the more anxious you are, the more difficult it will be. For beginners, to learn this chapter, you must first be psychologically prepared, fight a protracted battle, learn that you don't understand, stop immediately, and then think and summarize the knowledge points you have learned, don't start the study of this chapter immediately, after a period of time, and then start the second study, then you will find that there will be a great understanding and progress than the last study. Just keep learning, resting, learning again, and resting again.

After repeating it four to five times, you will be able to completely understand that this mountain will lay a solid foundation for your future study of business combinations and consolidated statements. Later on, it will be relatively easy.

1. How to confirm the right of equity investment.

1. The confirmation of rights must be carried out under the circumstances of the special stupid calendar, such as the investor's ** delisting from the main board to the third board trading, to hold the relevant ** in the main board to confirm the right to confirm, the confirmation of the right is actually to confirm the relevant ** shareholder rights.

2. When the relevant listed company is to be acquired by another listed company and the conversion is carried out by way of share exchange, the first investor of the target must confirm the relevant rights.

3. Article 32 of the Company Law of the People's Republic of China stipulates that the certificate of capital contribution: After the establishment of a limited liability company, a certificate of capital contribution shall be issued to shareholders. Article 33 stipulates that the register of shareholders: A limited liability company shall keep a register of shareholders.

2. How to evaluate equity investment.

1. Value evaluation of listed transactions.

In the case of complete development and relatively normal trading, the market can basically be used as the basic basis for evaluation. However, in the case of incomplete development and abnormal transactions, the value of the investment in the long-term investment cannot completely depend on the abnormal market, but should be based on the intrinsic value or theoretical value of the company, and the value of the enterprise should be judged by the economic strength and profitability of the issuing enterprise.

2. Value assessment of unlisted transactions**.

1) Valuation of preferred shares. The annual return of the preferred shares can be calculated in advance based on the determined dividend yield, and then discounted or capitalized to obtain the appraised value.

2) Valuation of common stock. According to several trends in common stock returns, they can be divided into three categories: fixed dividend models, dividend growth models, and segmented models.

1. Main accounting processing.

Long-term equity investments are financial assets. First of all, long-term equity investment is a financial asset, but it is different from financial assets, if long-term equity investment meets the standards of financial assets: first of all, the fair value can be reliably measured, and the purpose of holding is not long-term, then it should be accounted for as financial assets, but it should be noted that if your shareholding ratio is more than 20, it must be applicable to the long-term equity investment criteria.

Therefore, the scope of accounting for the financial financing and production standards can be understood as less than 20 equity ratios, why is this so? It is because you buy something in the secondary market, and it is rare to be able to buy more than 20 cases, if there is such a situation, then you must recognize the remaining socks for you not only short-term profits and then ** is so simple, everyone will think that you are in order to influence the company, so honestly as a long-term equity investment accounting. If you buy less than 20 **, the fair value can not be reliably measured, even if it is short-term to **, it should be accounted for as a long-term equity investment, and the conditions are still very harsh.

Therefore, the financial assets standard accounts for the fair value below the equity ratio of 20 can be reliably measured, and the fair value below 20 can not be reliably measured must be accounted for as a long-term equity investment, so this principle is best to grasp clearly.

2. Long-term equity investment cost method accounting.

Cost method accounting includes two situations, such as 20 equity ratio below, it is generally believed that you say a word is equal to not say, that is, there is not much right to speak, the operation and management of other enterprises basically have nothing to do with you, so you just wait for the year-end centripy on it, so the accounting method in this situation is to use the cost method, because you care about how much dividends you can get, and when you can recover your investment costs. This is also the essence of the cost method.

In addition, some people want to say that the shareholders are so scattered in reality, and it is possible that the right to speak is relatively large below 20, and here it is said that in fact, the major influence or control, if other shareholders are small soldiers and shrimps, then your 10 equity may also be counted, but this does not affect everyone's discussion, and the final result depends on whether you have the right to speak on the company.