Balance Sheet - Long Term Investment

Long Term Investment refer to a company have an investment in other companies or it subsidiaries in the form of securities such as bonds or stocks for income or market profit.

Long Term Investment also known as Marketable Securities in some balance sheet statement. It is refer to a company have an investment in other companies or it subsidiaries in the form of securities such as bonds or stocks for income or market profit.

The wholly owned subsidiary long term investment, assets and liabilities are not shown in the parent company consolidated balance sheet as it were part of the parent company but partially owned subsidiary company may appear in parent company consolidated balance sheet as long term investment or marketable securities.

Balance Sheet - Marketable Securities

Marketable securities or long term investment are listed as cost in balance sheet.

It is difficult to estimate the fair value of Marketable securities or long term investment, that why marketable securities usually shown on the balance sheet at cost. Investor should take attention on these item when it appear on the balance sheet to figure out additional information regarding long term investment or marketable securities.

Sometime item appear in balance sheet under header of other assets could be an investment stand between ordinary marketable securities and the permanent investment in a related company.