Singh Arjun In: Category - AssetsIs investment an asset?assetinvestment ShareFacebook1 AnswerVotedRecent Vaishnavi 2020-08-08T22:03:18+05:30Added an answer on August 8, 2020 at 10:03 pm This answer was edited. Yes, investments are assets.First, let me familiarize you with the meaning of the term investments in order to understand its nature.Meaning of InvestmentsInvestments are assets or resources owned and controlled by entities. They provide future economic value to entities. They are held with an intention to generate additional income or to benefit from the appreciation in value over time. Examples of investments 1. Investment in Mutual funds 2. Investment in Government securities 3. Investment in Debentures & Bonds 4. Acquiring Shares of companies 5. Acquisition of Land & Building to earn rentals or for capital appreciation 6. Investment in Subsidiaries, Associates, and Joint VentureAnalyzing the meaning of investments itself, we can conclude that investments are assets for entities acquiring them.Presentation of Investments in Financial Statements1. Long-term InvestmentsInvestments that are held for more than a period of 1 year are termed as Long-term Investments.Examplesa. Investment in Real Estate to earn rentals or for capital appreciation b. Purchase of Debentures or Corporate/Government Bonds having a maturity period of more than a year c. Investment in Subsidiaries, Associates or Joint VentureTreatment in Financial StatementsFinancial StatementTreatmentBalance SheetPresented as Long-term Investments in the balance sheet under the head “Non-Current Assets”2. Short-term InvestmentsInvestments that are held with an intention to dispose off within a period of 1 year are referred to as Short-term Investments. They are held primarily for the purpose of trading. They are also known as Marketable Securities.Examplesa. Investment in Mutual Funds b. Acquisition of Shares of companiesTreatment in Financial StatementsFinancial StatementTreatmentBalance SheetPresented as Short-term Investments in the balance sheet under the head “Current Assets”An extract of the balance sheet has been attached for a better understanding of the presentation of investment. 0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?