Facts

• Accounting information for investments is not only important to owners and managers, but also to external business stakeholders relying on the company's financial statements. These stakeholders can represent shareholders or lenders who desire information on the company's business risk.
  
  

Features

• Relevant information classifies investments by specific types. Investments types include trading, held-to-maturity and available-for-sale. Trading investment are actively bought and sold by the company. Held-to-maturity often represents bonds that will sell once it fully matures as an investment. Available-for-sale include mature investments and other miscellaneous types.
  
  

Function

• Business owners and managers require relevant accounting information in order to make decisions about investments. Companies often sell investments to raise capital for operations. Owners and managers must have a clear picture of each investment to make the best decision.