AKL 1: Investasi Saham Pada Entitas Asosiasi Bagian 1

Summary

In this informative session, Anggun discusses stock investment, focusing on accounting and investor reporting. He highlights various investment objectives, including earning income and exerting influence over companies. The presentation delves into accounting methods such as cost method and equity method for different ownership stakes, outlining the implications for financial reporting. Anggun explains how to record trading and available-for-sale securities, emphasizing the importance of proper journal entries for dividends and income. The video also touches on the significance of control in investments over 50%, with a brief introduction to the consolidation of financial statements. Overall, it's a comprehensive overview of stock investment principles.

Takeaways

• 😀 The main purpose of stock investment is to generate income through dividends or capital gains.
• 😀 Investors can pursue different types of investments: for profit, influence, or control over companies.
• 😀 Investments classified as trading or available for sale are evaluated based on their fair value on balance sheet dates.
• 😀 For investments below 20%, there is no significant influence, and they are recorded at cost with potential adjustments for fair value.
• 😀 Trading securities are marked to market, with gains recognized in the profit and loss statement, while available-for-sale securities affect comprehensive income.
• 😀 When an investor holds more than 20% of shares, significant influence is presumed, affecting how investments are accounted.
• 😀 The equity method is used for significant influence investments, where changes in net assets affect the investor's books without fair value adjustments.
• 😀 The initial purchase, dividend declarations, and reported net income require specific journal entries in equity method accounting.
• 😀 Control over an entity (more than 50% ownership) leads to different accounting treatments, often requiring consolidation of financial statements.
• 😀 Investments in associates, defined as entities where the investor holds significant influence, are recorded using the equity method unless classified as held for sale.

Q & A

What are the primary objectives of stock investment as discussed in the script?

The primary objectives of stock investment include earning income through dividends or capital gains, influencing company decisions through board representation, and gaining control over a company with significant ownership.

How does PSAK categorize stock investments based on ownership percentage?

PSAK categorizes stock investments as follows: holdings below 20% are classified as trading securities or available for sale, while holdings of 20-50% indicate significant influence and require the equity method. Ownership over 50% signifies control, necessitating consolidation.

What is the difference between trading securities and available-for-sale securities?

Trading securities are reported at fair value, with gains or losses recognized in profit and loss. Available-for-sale securities are also reported at fair value, but changes in value are recorded in comprehensive income and transferred to equity.

What accounting method is used for investments with significant influence?

For investments with significant influence (20-50% ownership), the equity method is used, which involves recognizing the investor's share of the investee's net income and adjusting the carrying value of the investment based on dividends received.

What are the key journal entries for trading securities?

The key journal entries for trading securities include recording the purchase at cost, recognizing dividend income when received, and accounting for unrealized gains or losses based on fair value adjustments.

How does the equity method affect investment accounting?

Under the equity method, the investment is recorded at cost and adjusted based on the investee's net income and dividends paid, impacting the carrying amount of the investment without adjusting for fair value.

What happens when an investor holds more than 50% of a company's shares?

When an investor holds more than 50% of a company's shares, they have control, which requires consolidating the financial statements of the subsidiary, combining all assets and liabilities in the investor's reports.

Can you explain the significance of having board representation in an investment?

Having board representation is significant because it allows the investor to influence management decisions, policy-making, and overall company direction, thereby aligning the investee's actions with the investor's interests.

What implications does receiving dividends have on the equity method investment?

Receiving dividends reduces the carrying amount of the investment when using the equity method, reflecting the outflow of cash and the return of capital to the investor.

How are unrealized gains and losses from trading securities reported?

Unrealized gains and losses from trading securities are reported in the profit and loss statement, directly affecting the reported income of the investor.