Financial Assets - Non-Current
A group, no postings. It totals long-term investments held for more than a year, split by how NFRS 9 measures them.
In detail
Financial Assets - Non-Current, numbered 1170, is the group for investments the company intends to hold for more than a year that are not shares in associates. NFRS 9 sorts such investments by how they are measured, and the three children follow that split: Investments at Amortised Cost for fixed deposits and bonds held to collect interest, Investments at Fair Value through OCI for shares held for dividends and revalued through equity, and Investments at Fair Value through Profit or Loss for anything held to trade. The group total shows a lender how much of the business is locked up in long-term financial holdings. Interest and dividends on all of them go to Other Income. Post only to the children.
Formula
Financial Assets - Non-Current = Investments at Amortised Cost + Investments at Fair Value through OCI + Investments at Fair Value through Profit or Loss.
How to record it in BRAccount
- 01Go to Accounts Setup > Chart of Accounts and expand Assets > Non-Current Assets > Financial Assets - Non-Current.
- 02Read the three children and decide which one a new investment belongs to with the auditor.
- 03Open Financial Reports > Balance Sheet; the group shows the total of long-term investments.
- 04Post the investment to the chosen child by Payment Entry or Journal Entry, never to the group.
- 05Move a holding to Short-term Investments by Journal Entry when it is due within twelve months.
When to use it
Do not post here. Choose the Amortised Cost, Fair Value through OCI or Fair Value through Profit or Loss child.
Example from the demo books
A two-year fixed deposit and shares held for dividends both sit under Financial Assets - Non-Current.