Shares in Companies
Code: 1253
👁 Views: 106
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Value of shares owned in other companies for investment purposes
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 9 / IAS 28
Financial Instruments / Investments in Associates
US GAAP
ASC 321 / ASC 323
Investments - Equity Securities / Equity Method
❓ Frequently Asked Questions
Q: What are shares in companies?
A: Represent ownership in other companies for investment purposes (not control), measured at fair value.
Q: How are dividends from these shares recorded?
A: When dividends are declared, the entry is: Dr. Dividends Receivable, Cr. Dividend Income.