Accounting Treatments Specific to Financial Assets

Abstract

The subject of this article is financial assets, which include securities held in other companies’ equity and long-term receivables in the form of long-term loans to other companies or in the form of deposits, guarantees, and bailouts submitted by the entity to third parties. Starting from defining, delimiting, and presenting the recognition practices, namely the cancellation of recognition and evaluation of these asset structures, we have exemplified through case studies the accounting of the main financial asset operations.