how can I record my investment in my
balance sheet was the difference between
equity and debt investment how can I
record available for sale and trading
marketable investment how can I record
the change in market value of each kind
of investment welcome welcome
it's Mina
today we are going to cover the second
element on my balance sheet investment
short-term investment marketable
investment available for sale investment
we have two kind of investment we have
investment in equity and we have
investment in Debt that let's first
understand what is the mean of investment
let's see ABC company
purchase stock and bond from other
company this one called investment as I
am company invest in debt or equity bond
stocks  and other company what is the
difference between that debt  investment and
equity investment in debt 
always evolved low risk and also present
a lower return on investment the most
common form of investment in debt  are
bonds usually carrying fixed
rate every year the company has to
receive fixed interest rate from its
investment in bonds
what about investment in equity
investing in equity is a share of
ownership like investing and
common stock prefer stocks the owner of
equity investment gaining profit from
dividends dividend is the percentage of
a profit is given to shareholders the
equity owners also the equity holders
gaining from a changing in market value
of the investment
debt and equity
investment recorded using called the
method
cost method classified the
investment into three category available
for sale trading or marketable
securities and held to majority only in
case of the investment this
classification based on the company
the intention
what  that means
if the company
intend to sell the investment in short
then the company has to classify such
investment as trading but if the
the company intend to keep the debt
investment till the maturity of the
three years five five years at the time
of the bond the maturity of the time of
debt investment now the company has to
record it as held to maturity what if
the company has the intention to sell
this investment before the maturity but
not in short term now the company has to
record it as available for sale
investment
classified as trading
securities and available for sale both
the both them are recorded with fair
value and each balance sheet date the
company has to reevaluate this
investment and record any decrease or
until increase change in fair market value
this recording of a change of
market value called unrecognized gain
or loss if the market value of the
investment increase that's mean the company
gained from Increasing of market value
and if the market value of the
investment decrease that means the
company lossing from its investement
the only difference between trading and
available for sale this gain or loss in
case of trading we will record them
directly on the income statement but in
case of available for sale we have to
record it in other comprehensive income
and on the time of selling this
investment I have to reverse whatever I
recorded in OCI
and record all the gain or loss
from same in income statement
let's go to the journal entry to build better
understanding on the time of purchasing
this investment debit our investment
balance sheet credit our cash how much I
paied to purchase this investment okay as
the balance she dates each year  the
the company have to reevaluate the
investment if the market value is more
than recorded amount recorded value now
the company making making gain
how can I record this gain
I will debit my investment I will
increase my balance sheet investment as
the fair market value increased and the
credit gain this gain
if it's available for sale that one will go to
OCI
other comprehensive income but if these
trading securities these gain will go to
directly income statement this  one called 
and unrealized gain coz
actually is still no selling for this
investment I just record the increasing
or this decreasing the value okay now
I solve this investment I receive cash
debit cash then I have to take the
investment out from balance sheet
credit investing and the different will
draw and from statement this one in case
of trading
what if it's available for sale it is
the same but I have to close
whatever I recorded them OCI  see I will
