INVESTMENTS

17-1
 Learning Objectives
1. Describe the accounting framework for financial assets.

2. Understand the accounting for debt investments at amortized cost.

3. Understand the accounting for debt investments at fair value.

4. Describe the accounting for the fair value option.

5. Understand the accounting for equity investments at fair value.

6. Explain the equity method of accounting and compare it to the fair

value method for equity investments.

7. Discuss the accounting for impairments of debt investments.

8. Describe the accounting for transfer of investments between

categories.

17-2
 Investments

Investments in Other Reporting

Debt Investments
Equity Securities Issues

Amortized cost Fair value Impairment of value

Fair value Equity method Transfers between
categories
Fair value option Consolidation
Fair value controversy
Summary of debt
investment accounting Summary

17-3
 Accounting for Financial Assets

Aset Finansial
 Kas

 Investasi ekuitas perusahaan lain (saham biasa atau

saham preferen).

 Hak kontraktual untuk menerima kas dari pihak lain

(loans, piutang, dan obligasi).

IASB menghendaki agar perusahaan mengklasifikasi aset

keuangan ke dalam dua kategori pengukuran, yaitu amortized
cost dan fair value tergantung keadaan.

17-4
 Accounting for Financial Assets

Dasar Pengukuran
IFRS menghendaki agar perusahaan mengukur aset finansial
berdasarkan dua kriteria:
 Model bisnis perusahaan untuk mengelola aset
keuangan; dan
 Karakteristik arus kas kontraktual aset keuangan

Hanya investasi utang seperti piutang, pinjaman (loan), dan investasi

obligasi yang memenuhi dua kriteria di atas yang dicatat sebesar
amortized cost. Seluruh investasi utang lainnya dicatat sebagai fair
value.
17-5
 Accounting for Financial Assets

Dasar Pengukuran
Investasi Ekuitas umumnya dicatat dan dilaporkan sebesar
fair value.

Ringkasan Pendekatan Akuntansi Investasi Illustration 17-1

17-6
 Debt Investments

Investasi Utang memiliki sifat dari pembayaran

kontraktual pada tanggal tertentu atas
 Pokok utang dan
 Bunga atas pokok utang yang outstanding.
Perusahaan mengukur investasi sebesar
 amortized cost atau
 fair value.

17-7
 Debt Investments—Amortized Cost

Illustration: Robinson Company purchased $100,000 of 8%

bonds of Evermaster Corporation on January 1, 2011, at a
discount, paying $92,278. The bonds mature January 1, 2016
and yield 10%; interest is payable each July 1 and January 1.
Robinson records the investment as follows:

January 1, 2011

Debt Investments 92,278

Cash 92,278

17-8 LO 2 Understand the accounting for debt investments at amortized cost.

 Debt Investments—Amortized Cost
Illustration 17-3

Schedule of
Interest
Revenue and
Bond
Discount
Amortization—
Effective-Interest
Method

17-9 LO 2
 Debt Investments—Amortized Cost

Illustration: Robinson Company records the receipt of the

first semiannual interest payment on July 1, 2011, as follows:

July 1, 2011

Cash 4,000
Debt Investments 614
Interest Revenue 4,614

17-10 LO 2 Understand the accounting for debt investments at amortized cost.

 Debt Investments—Amortized Cost

Illustration: Robinson is on a calendar-year basis, it accrues

interest and amortizes the discount at December 31, 2011, as
follows:

December 31, 2011

Interest Receivable 4,000

Debt Investments 645
Interest Revenue 4,645

17-11 LO 2 Understand the accounting for debt investments at amortized cost.

 Debt Investments—Amortized Cost

Pelaporan Investasi Obligasi sebesar Amortized Cost

Illustration 17-3
(lihat tabel amortisasi pada slide 17-13)

17-12
 Debt Investments—Amortized Cost
Illustration 17-3

17-13
 Debt Investments—Amortized Cost

Illustration: Assume that Robinson Company sells its

investment in Evermaster bonds on November 1, 2013, at
99.75 exclude accrued interest. Robinson records this discount
amortization as follows:

November 1, 2013

Debt Investments 522

Interest Revenue 522

$783x 4/6 = $522

17-14 LO 2 Understand the accounting for debt investments at amortized cost.

 Debt Investments—Amortized Cost

.
Perhitungan keuntungan atau kerugian realisasi
Illustration 17-4

Cash 102,417
Interest Revenue (4/6 x $4,000) 2,667
Debt Investments 96,193
Gain on Sale of Debt Investments 3,557

17-15 LO 2
 Debt Investments—Fair Value

Debt investments at fair value mengikuti perlakuan

akuntansi yang sama dengan investasi utang held-for-
collection selama periode pelaporan, yaitu dicatat sebesar
amortized cost.

Namun, pada setiap tanggal pelaporan, perusahaan

 Menyesuaikan amortized cost ke fair value.

 Keuntungan atau kerugian yang belum direalisasi,

dilaporkan sebagai bagian dari net income (fair value
method).

17-16
 Debt Investments—Fair Value

Ilustrasi: Pada tanggal 1 Januari 2011, Robinson Company

membeli obligasi Evermaster Corporation yang memiliki nilai
nominal $100,000 dan tingkat bunga 8%. Robinson membayar
sebesar $92,278. Obligasi ini akan jatuh tempo tanggal 1
Januari 2016 dan menghasilkan pendapatan bunga 10%;
bunga nominal dibayarkan setiap tanggal 1 Juli dan 1 Januari.

17-17
 Debt Investments—Fair Value

Illustration: Entries are the same as those for amortized cost.

17-18 LO 3
 Debt Investments—Fair Value

Illustration: Untuk menerapkan pendekatan fair value,

Robinson menentukan bahwa, karena ada penurunan tingkat
bunga, fair value investasi utang naik menjadi $95,000 pada
tanggal 31 Desember 2011.
Illustration 17-5

Securities Fair Value Adjustment 1,463

Unrealized Holding Gain or Loss—Income 1,463

17-19
 Debt Investments—Fair Value

Penyajian Statemen Keuangan

Illustration 17-6

17-20
 Debt Investments—Fair Value

Illustration: Pada tanggal 31 Desember 2012, jika fair value

utang investasi sebesar $94,000.
Illustration 17-7

Unrealized Holding Gain or Loss—Income 2,388

Securities Fair Value Adjustment 2,388

17-21 LO 3 Understand the accounting for debt investments at fair value.

 Debt Investments—Fair Value

Penyajian Statemen Keuangan

Illustration 17-8

17-22
 Debt Investments—Fair Value
Illustration 17-7
Ilustrasi: Pada tanggal 1 November 2013, Robinson menjual
investasi pada kurs 99 ¾ plus bunga berjalan.

•Satu-satunya perbedaan terjadi pada tanggal 31 Desember

2013.

•Karena obligasi tidak lagi dimiliki oleh Robinson, rekening

Securities Fair Value Adjustment dilaporkan sebesar NOL.

•Robinson membuat jurnal eliminasi rekening penilaian sbb:

Securities Fair Value Adjustment 925

Unrealized Holding Gain or Loss—Income 925

17-23
 Debt Investments—Fair Value

Income Effects on
Debt Investment
(2011-2013)

Illustration 17-9

17-24 LO 3 Understand the accounting for debt investments at fair value.

 Debt Investments—Fair Value

Ilustrasi (Portfolio of Securities): Webb Corporation memiliki

dua investasi utang yang dicatat sebesar fair value. Posisi
investasi per 31 Desember 2011 adalah:

Illustration 17-10

17-25
 Debt Investments—Fair Value
Ilustrasi (Portfolio of Securities): Webb membuat jurnal
penyesuaian pada tanggal 31 Desember 2011 untuk mencatat
penurunan nilai dan untuk mencatat rugi sebagai berikut.

Unrealized Holding Gain or Loss—Income 9,537

Securities Fair Value Adjustment 9,537

17-26
 Debt Investments—Fair Value

Ilustrasi (Penjualan Investasi): Pada tanggal 1 Juli 2012,

Webb Corporation menjual obligasi dengan harga $90,000 saat
obligasi tersebut memiliki amortized cost sebesar $94,214.
Illustration 17-11

Cash 90,000
Loss on Sale of Debt Investments 4,214
Debt Investments 94,214

17-27
 Debt Investments—Fair Value

Illustration (Sale of Debt Investments): Webb reports this

realized loss in the “Other income and expense” section of the
income statement. Assuming no other purchases and sales of
bonds in 2012, Webb on December 31, 2012, prepares the
information:
Illustration 17-12

17-28 LO 3 Understand the accounting for debt investments at fair value.

 Debt Investments—Fair Value

Illustration (Sale of Debt Investments): Webb records the

following at December 31, 2012.
Illustration 17-12

Securities Fair Value Adjustment 4,537

Unrealized Holding Gain or Loss—Income 4,537

17-29 LO 3 Understand the accounting for debt investments at fair value.

 Debt Investments—Fair Value

Financial Statement Presentation

Illustration 17-13

17-30 LO 3 Understand the accounting for debt investments at fair value.

 Fair Value Option

Perusahaan memiliki opsi untuk melaporkan aset keuangan

pada fair value. Opsinya adalah

 Diterapkan berdasarkan instrument-by-instrument basis

dan

 Umumnya tersedia hanya ketika perusahaan pertama kali

membeli aset finansial atau menimbulkan kewajiban
finansial.
Jika sebuah perusahaan memilih untuk menggunakan opsi
fair value, perusahaan mengukur instrumen ini menggunakan
fair value sampai perusahaan tidak lagi mempunyai
kepemilikan.
17-31
 Fair Value Option

Ilustrasi: Hardy Company membeli obligasi yang dikeluarkan

oleh German Central Bank. Hardy merencanakan untuk
memiliki investasi utang tersebut sampai jatuh tempo dalam
lima tahun. Pada tanggal 31 Desember2011, amortized cost
investasi ini adalah €100,000; dan fair value pada tanggal 31
Desember 2011, adalah €113,000. Jika Hardy memilih opsi fair
value, perusahaan membuat jurnal pada tanggal 31 Desember
2011 sebagai berikut:

Debt Investment—German Bonds 13,000

Unrealized Holding Gain or Loss—Income 13,000

17-32
 Summary of Debt Investment Accounting

Illustration 17-14

17-33 LO 4 Describe the accounting for the fair value option.

 Equity Investments

Equity investment menunjukan kepemilikan saham ordinary

dan saham preference

Cost includes price of the security.

 Broker’s commissions and fees are recorded as

expense (for trading securities).

The degree to which one corporation (investor) acquires an

interest in the common stock of another corporation
(investee) generally determines the accounting treatment for
the investment subsequent to acquisition.

17-34 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments
Illustration 17-15
Levels of Influence
Determine Accounting Methods

17-35 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments
Illustration 17-16
Accounting and Reporting for
Equity Investments by Category

17-36 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

Invetasi Sekuritas jangka pendek untuk diperjualbelikan

disebut FVTPL (Fair Value Through Profit or Loss)

Pecatatannya :

• Investasi dicatat berdasarkan Fair Value

• Mencatat Laba Rugi yang belum direalisasi di Laba

17-37 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

IFRS allows companies to classify some equity

investments as non-trading.

General accounting and reporting rule:

 Investments valued at fair value.

 Record unrealized gains and losses in other

comprehensive income.

 Brokerage fees are capitalized

17-38 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

Illustration: November 3, 2011, Republic Corporation

purchased ordinary shares of three companies, each
investment representing less than a 20 percent interest.

Republic records these investments as follows:

17-39 LO 5 Understand the accounting for equity investments at fair value.

 Equity
Investments
at Fair Value

Republic records these investments as follows:

Equity Investments 718,550

Cash 718,550

On December 6, 2011, Republic receives a cash dividend of

€4,200 on its investment in the ordinary shares of Nestlé.

Cash 4,200
Dividend Revenue 4,200

17-40 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

At December 31, 2011, Republic’s equity investment portfolio has

the carrying value and fair value shown.
Illustration 17-17

17-41 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

Illustration 17-17

Unrealized Holding Gain or Loss—Income 35,550

Securities Fair Value Adjustment 35,550

17-42 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

On January 23, 2012, Republic sold all of its Burberry ordinary

shares, receiving €287,220.

Cash 287,220
Equity Investments 259,700
Gain on Sale of Equity Investment 27,520

17-43 LO 5 Understand the accounting for equity investments at fair value.

 Equity Investments at Fair Value

Illustration 17-19

Securities Fair Value Adjustment 101,650

Unrealized Holding Gain or Loss—Income 101,650

17-44 LO 5 Understand the accounting for equity investments at fair value.

 Equity Method

Bila Investasi sebesar 20% atau lebih (langsung maupun tidak

langsung) dimana mempunyai pengaruh yang signifikan
terhadap Invetasi.

Pencatatan menggunakan Metode Ekuitas

LO 6 Explain the equity method of accounting and compare

17-45
it to the fair value method for equity investments.
 Equity Method

Metode Ekuitas
Mencatat invetasi pada kos dan selanjutnya melakukan
penyesuaian untuk:
 Bagian investor dari laba rugi atau investasi dan
 Deviden yang di terima investor.

Bila invetasi mengalami kerugian yang lebih besar dari nilai buku
investasi dari investor , maka investor menghentikan menggunakan
metode ekuitas.

LO 6 Explain the equity method of accounting and compare

17-46
it to the fair value method for equity investments.
 Equity Method

Illustration 17-23

17-47 LO 6
 Consolidation

Memiliki pengendalian – bila entitas memiliki hak suara lebih

dari 50 % terhadap entita lain maka:

 Investor di sebut parent.

 Investasi di sebut subsidiary.

 Investasi di subsidiary di laporkan parent sebagai invetas

jangka panjang.

 Parent membuat laporan keuangan consolidated

financial statements.

17-48
 Reporting Treatment of Investments
Illustration 17-26

17-49 LO 8 Describe the accounting for transfer of investments between categories.

 Studi Kasus

E17-3
On January 1, 2010 Roosevelt Company purchased 12% bonds, having a
maturity value of $500,000, for $537,907.40. The bonds provide the
bondholders with a 10% yield. They are dated January 1,2010, and mature
January 1, 2015, with interest receivable December 31 of each year.
Roosevelt’s business model is to hold these bonds to collect contractual cash
flows.
Instructions
a.Prepare the journal entry at the date of the bond purchase.
b.Prepare a bond amortization schedule.
c.Prepare the journal entry to record the interest received and the amortization
for 2010.
d.Prepare the journal entry to record the interest received and the amortization
for 2011.

17-50
 Answers
a. January 1, 2010

Debt Investment 537,907.40

Cash 537,907.40

a.
Schedule of Interest Revenue and Bond Premium Amortization 12%
Bonds Sold to Yield 10%
Date Cash Interest Premium Carrying amount
Received Revenue Amortized of Bonds
1/1/10 - - - $537,907.40
12/31/10 $60,000 $53,790.74 $6,209.26 $531,698.14
12/31/11 $60,000 $53.169,81 $6,830.19 $524,867.95
12/31/12 $60,000 $52.486,80 $7,513.20 $517,354.75
12/31/13 $60.000 $51,735.48 $8,264.52 $509,090.23
12/31/14 $60,000 $50,909.77* $9,090.23 $500,000.00

17-51
 c.
December 31, 2010

Cash 60,000

Debt Invesment 6,209.26

Interest Revenue 53,790.74

d. December 31, 2011

Cash 60,000
Debt Investments 6,830.19
Interest Revenue 53,169.81

17-52