Inventory of financial investments

Inventory of financial investments assumescarrying out a thorough check by third-party organizations or internal forces of the firm on the value of the actual costs incurred in buying and maintaining securities, as well as the reliability of the data and the correctness of the filing of financial documents. As already noted, internal and external inventory can be conducted, that is, specialists or a division of the company itself or special firms specializing in the provision of these types of services. However, the rules and principles for conducting such inspections are the same for all.

First of all, I would like to note that financial investments include:

Securities issued by the state.
Bonds, checks, bills and other securities of organizations and enterprises.
Equity participation in the authorized capital of companies.
Part of the shares of joint stock companies of any type.
Deposit accounts in commercial banks.
Accounts receivable, the rights of claims which were transferred under the relevant contract.

So, at the beginning of the audit a specialcommission on the order of the head of the enterprise. Inventory of financial investments is impossible without preliminary receipt of an inventory in the context of certain types of financial documents and necessarily in two copies. Then specialists are engaged in paper red tape, checking how credible and legitimate the presence of securities and other financial documents in the assets.

It is possible to single out the main criteria that make it possible to classify financial instruments as assets:

Correctness and clarity of registration of documents confirming the company's right to own them.
An assessment of how these investments can affect the company's future performance, for example, an assessment of insolvency risk.
Information revealing the main economic indicators and types of income that can be obtained in the future from investments of this kind.

In fact, the inventory of financial investmentsis a long process, as it is necessary to do painstaking work. After all, every security is subject to verification, and in grouping by category. The specialist compares the actual availability of financial papers and their number, reflected in the documentation. Particular attention is given to the real value of such assets and the definition of its current price.

Those securities that are not in theproperty of the company, but managed by it under a contract granting the right to use, are also subject to verification. In this case, financial investments are recorded on the basis of the price approved by the joint contract. A specialist then checks the accuracy and clarity of entering all the necessary information in the financial accounting book.

As a final part of the inventoryit is possible to highlight the inclusion of the results of the inspection in the inventory. Based on this, the actual availability of assets and their reflection in documents are checked. In practice, you can notice a sufficient number of errors allowed in different periods of the turnover of financial instruments. That is why the inventory of financial investments is considered a necessary procedure, and the accuracy and accuracy of accounting for assets in the enterprise depends on the regularity of its implementation.

As a rule, employees of companies allow the following errors or distortions:

incorrect filling of documents when making an investment of financial resources;
attribution of an investment to financial assets, when there is no corresponding reason;
inaccurate calculation of the initial price of the security;
incomplete reflection of the revenue part, formed by financial investments;
violation of modern legislative norms.