Accounting and Analysis of the Company's Portfolio Investments

<p>Questions of forming a portfolio and its reflection in the accounting are becoming more and more relevant for the Russian theory and practice. Nevertheless, they are still not completely solved.&nbsp; More and more investors appear who are interested in the opportunity to put their money in profitable and reliable securities and prefer to invest in the stock market despite risks. Therefore, there is a tendency of growth to study the portfolio investments. The main problem is the formation of a portfolio to maximize expected returns with minimal risk. For effective work of investors on the securities market, it is necessary to determine more effective methods of portfolio management and accounting. Investors need to know how to reflect financial investments in the financial statements to monitor the activities of the company.</p><p>The research focuses on the problem of analysis and accounting of portfolio investment. The main aim of this proposal is investigating the methods of forming portfolio and reflection of portfolio investments in the financial statement. The research seeks to answer two main questions:</p><p>- How can the optimal portfolio be formed?</p><p>- How does it reflect in the accounting?</p><p>The goal of the research will be achieved by using theoretical and methodological basis and method the basic elements of accounting. This work concerns the economic substance of the investment, defines the tasks of accounting and investment analysis, considers the current practice of accounting for investments and conducts an analysis of the effectiveness of portfolio investment. Therefore, it is necessary to calculate all the financial ratios, such as the liquidity ratios, leverage ratios, profitability ratios, valuation ratios and to spot how the portfolio affects on the company&#39;s financial statements. The project proposes the most optimal portfolio investments for a particular company.</p>