Account 58 in Accounting is an article on financial investments. It summarizes information about the presence and movement of enterprise investments in various values, capitals. Let us further consider in detail the account 58 in accounting, the objects that pass through it, the features of their fixation in reporting.
General information
Account 58 in accounting (in the balance sheet) collects information about the company's investments in stocks, securities, bonds. This article includes funds invested in the authorized capital of other organizations. It also reflects loans provided to third parties.
Account 58 in accounting: subaccounts
This article may open:
- Subch 58.1 for shares and shares.
- Subch 58.2 on debt securities (bonds).
- Subch 58.3 on loans granted.
- Subch 58.4 on deposits by agreement of a simple partnership, etc.
Under article 58.1, the presence and movement of investments in JSC stocks, the stock (authorized) capital of third-party companies is accounted for. By subch. 58.2 there is a movement of deposits in private and public debt securities. These include, in particular, bonds.
58 accounting account: postings
In the course of its activities, the enterprise can make investments in various values. All these investments are credited to account 58. In accounting, these investments are debited. At the same time, articles reflecting the values to be transferred for the implementation of these deposits are credited. For example, a company’s acquisition of a third-party company’s securities takes place in DB cf. 58 and cd. 51 or count 52 (settlement or currency accounts, respectively). 
Write-off of excess amounts
If the purchase value of the purchased bonds and other debt securities is higher than the nominal, then the resulting difference is closed by an entry in DB cf. 76 and cd 58 and 91. The debit is the amount of income due to receive. The loan reflects the difference between the funds allocated to the account. 76, fixing calculations with debtors and creditors, and inv. 58. The repurchase (redemption) and sale of securities is reflected in SB accounts. 91. At the same time, account 58 in accounting is credited. Such records are not made only by those enterprises that show these operations on the account. 90.
Loans
As indicated above, they are also reflected in account 58. In accounting, loans secured by promissory notes are held separately under this item. The movement of funds provided for use by individuals (except employees of the enterprise) and legal entities is shown by debit. In this case, account 58 in accounting is active. It corresponds to the score. 51 or others similar. When repaying loans, a reverse recording is made. That is, the movement will be in db midrange. 51 and cd 58.
Contract Deposits
Upon provision of a deposit, account 58 is debited in accounting. In the record, it corresponds to the score. 51 and other articles reflecting the movement of the allocated property. Accordingly, as in the previous case, upon termination of the contract, a reverse record is made. Thus, whether account 58 will be active or passive in accounting depends on the operation being performed. 
Analytics
Accounting should provide the ability to obtain information on long-term and short-term assets. Analytics are carried out for the article under review in accordance with the types of financial investments and the objects in which they are made:
- By company - sellers of shares.
- For other enterprises to which the company is a party.
- By borrowing organization, etc.
Accounting for investments within the group of interconnected companies, the activity of which is formed by consolidated reporting, is carried out on the account. 58 apart.
Participation in other firms
It is reflected in the sc. 58 in various forms. Moreover, the instructions focus on the fact that this article contains values that are not only transferred for the implementation of the relevant investments, but also those that are subject to transfer. In the latter case, in particular, this refers to securities whose ownership rights have already passed to the acquirer. As a rule, participation in other companies is expressed in the purchase of shares. But the market value of securities is constantly fluctuating. In the process of accounting, the emerging difficulties can become crucial. In the previous instruction, it was noted that bonds, stocks and other securities are recorded under financial investments at their purchase value. The new recommendations did not say anything about this. This is due to the fact that the procedure in accordance with which the valuation of assets is carried out is regulated by other regulatory acts. One of them, in particular, is the Regulation on accounting and reporting. Paragraph 44 states that financial investments are fixed in the amount of the investor's actual expenses. These costs are in some cases higher than the purchase price in the amount of certain expenses. The latter, in particular, may be payment for consulting and information services related to the purchase of securities, remuneration for the intermediary, with whom the transaction was concluded, and so on. 
Compromise solution
The excess of the market value over the nominal value in classical terminology is called agio, the decrease is dizajio. There is a lot of debate in the literature about whether these processes affect the size of the capital of an enterprise. Realistic positive answer. This is due to the fact that in this case, the value of securities and the total price of assets are more correctly reflected. A negative answer will be no less realistic. In this case, the amounts actually invested in securities and, accordingly, in assets will remain. In practice, a compromise solution has been worked out. Agio is not reflected in accounting, but dazajio is shown using sc. 59, holding reserves for impairment of investments in shares and other securities.
Contradictions in norms
In accordance with the plan for accounts, the accounting of funds invested in deposits in banks is carried out by subaccount. “Deposit accounts” (55.3). Another indication is contained in paragraph 3 of PBU 19/02. This paragraph states that such deposits are recorded by account 58. In accounting, a deposit, in accordance with applicable law, is reflected in the way that the company chooses. In this case, the preferred option can be fixed in the financial policy and disclosed in the explanatory note attached to the statements.
Reflection methods
Thus, you can choose one of the following options:
- Regardless of the type, deposits are shown in subaccount. 55.3. At the same time, experts recommend creating separate articles on the types of deposits - demand deposits, urgent, certified by a certificate, and so on.
- Depending on the type of deposits are recorded on the account. 58.
Many experts are of the opinion that the second option is more appropriate. This is because the deposit is opened to extract additional profit from the provision on a reimbursable basis in the use of company assets.
Stocks and shares
The company's management can make investments in the authorized capital of various commercial organizations, purchase their shares, that is, invest in third-party companies. Such activities may be carried out:
- In the form of a cash contribution through the acquisition of shares.
- By transferring all kinds of intangible and tangible assets.
- In the form of direct investment of funds in capital.
All of these options significantly complicate the characterization of subsch. 58.1. Thus, it can be called:
- Material account.In this case, the material values contributed to the capital of a third-party company are taken into account.
- Money accounting account. In this case, one should proceed from the position in which it is located by the developers of the Plan, as well as from the possibility of quick liquidity of securities.
- Current account. This is due to the fact that in all cases there is a relationship between the entities that provide capital and those who receive it.
As a result, in accordance with these interpretations, three versions of accounting arise. Consider them.
Face value
Securities can be accounted for by this indicator. The advantages of this method is the ease of fixing inventory. The balance and the amount of nominal values are equal. The amount of recorded investments becomes equal to the share corresponding to the cost of capital of the company to which these shares belong. Among the shortcomings, it is worth noting that the real price of securities almost never corresponds to the nominal one. This means that the balance on subaccount. 58.1 will not be real.
Actual acquisition cost
In this case, the balance on the subaccount. 58.1 will reflect funds actually invested in shares. However, along with this, it rarely corresponds to the amount of capital that belongs to the acquirer of the issuing company. This fact creates certain difficulties in the inventory process.
Current rate
When accounting for this indicator, the balance will show the liquidation value of the securities, that is, the price at which they can be sold at the current moment. However, one must remember that the stock price is very volatile. This encourages the accountant to constantly reassess them. Accordingly, their inventory is becoming more complicated. At the same time, the cost of capital, which was really driven, essentially disappears, and it is rather problematic to calculate the face value. Following the principle of prudence, it is preferable to choose the second and third options. Shares should be accounted for at cost of actual acquisition. However, if the current rate falls below the purchase price, the difference is written off at a loss. 
Conclusion
All investments are reflected in the debit of the “Financial Investments” account for units and shares in full (at their actual cost). In this case, the paper face size does not matter. Stocks come in actual. Also, the size of the acquired share in the capital of the company does not matter. The buyer must capitalize it on the amount received in fact. Shares, like other property, are reflected in the balance sheet of the company, provided that it has the right to own them. This requirement is established by paragraph 44 of the Accounting Standards. The moment of its transition to paper and rights fixed by them depends on the method of their storage and fixing. This may be a special registry system or depository.
