Long Term Investment

What is a Long Term Investment?

A long term investment is part of the balance sheet, and is an investment which a business intends to hold for more than one year from the balance sheet date. A long term investment can include such things as stocks, shares, bonds, cash and property.

There is no difference in the nature of the investment between long term and a short term investments, it is simply the intention of the business which differs. For example, a business can hold a property with the intention of selling it as soon as possible providing it gets the right price, this would be regarded as a short term investment. However, if it held the same property with no intention of selling, it would be regarded as a long term investment.

For further information see the Wikipedia definition.

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Long Term Investment March 23rd, 2016Team

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