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The Investments register is an account template that records the detail behind a company's investment holdings, covering cost, valuation movements, impairments and disposals for each individual investment, and reconciles that detail to the trial balance value of the nominal code it is assigned to.

Table of contents 

When should I use this template?

Assign the Investments register to any nominal code that holds investments: shares in subsidiaries, joint ventures or associates, listed investments, or other unlisted investments. Use one instance per nominal code. If a client holds investments across several codes, for example listed and unlisted investments in separate codes, assign the template to each one.

The Investments summary template then pulls all of these together into a single note-ready schedule, so use the two together. This is the same relationship as the Fixed asset register and Summary of fixed assets templates elsewhere in the working papers.

Before you start

  • Decide which nominal code or codes hold investments and assign the Investments register template to each one. Open the account in Working Papers, click Edit, and select the template.
  • Add the Investments summary template to the file if it is not already there, so the register has somewhere to roll up to.
  • Have supporting documentation for each holding to hand (share certificates, valuations, board minutes for acquisitions and disposals), as each row supports a file attachment.

Background

This is a working paper rather than a set of accounting rules. It gives you a structured place to build up the cost or valuation movement for each investment the client holds, and it flags automatically if the movements you have entered do not add up to the account's trial balance value.

Steps

  1. For each investment held in the account, add a row and enter its Type (Equity, Debt or Other), Valuation model (Cost or Revaluation), Category (Subsidiary, Associate, Joint venture, Listed investment, Unlisted investment or Other investment), a short Description, and the Acquisition date. Category is required, as it drives how the investment is grouped in the summary.
  2. Enter the Original cost and, where relevant, the Quantity held, and attach any supporting documents.
  3. If the investment was acquired during the current period, the brought-forward cost is automatically nil and the addition is set to the original cost. If it was acquired in an earlier period, enter the brought-forward cost and any addition for the year yourself.
  4. Enter any Revaluation movement for the year. This is used where the investment is carried at valuation rather than cost. Entering a revaluation opens a second line asking who carried it out and for a supporting attachment.
  5. Enter any Impairment for the year.
  6. If the investment was disposed of in the period, tick the disposal box. This zeroes the closing cost or valuation and net book value for that investment, and opens a line for the Disposal proceeds, from which the template calculates the profit or loss on disposal.
  7. Add any Comments on the row. Use the year-end attachment and additional information line under the table for documents or notes that apply to the whole investment listing for that year rather than to one holding.
  8. Check the reconciliation line under the table. It compares the total closing net book value to the account's trial balance value and shows a green dot when they agree, or a red dot with the difference when they do not.

What flows through to the rest of the accounts/workflow?

Every instance of this template feeds the Investments summary template, which totals the cost, additions, disposals, revaluations, impairment and net book value across all investment accounts, split by category (subsidiaries, joint ventures and associates, listed and other investments). The Investments summary is what should be used to complete the investments note in the financial statements, while the register itself is the supporting working paper.

What rolls forward next year?

The register does not automatically roll figures forward from one year to the next. Each year's revaluation, impairment, disposal and comments are entered fresh, and the brought-forward cost for an investment already held at the start of the period is entered directly rather than carried over. Investments that continue to be held simply carry on as new rows in the following period using the same acquisition date and cost history.

Where the data comes from

All figures come from client records for each holding: share certificates, valuation reports, board minutes authorising acquisitions, revaluations or disposals, and bank statements or contract notes for consideration paid or received.

Frequently asked questions

Why is my reconciliation showing a difference?

The total net book value across all rows does not match the trial balance value of the account. Check that every movement in the period (additions, revaluations, impairments, disposals) has been captured on the relevant row.

Do I need to complete every column for every investment?

Category, Description and Acquisition date are required. The other fields depend on what happened to that investment in the year. For example, there is no need to enter a revaluation if the investment is held at cost and has not moved.

Where do I see the combined investments figure for the accounts?

Use the Investments summary template, which is designed to be used alongside every Investments register instance in the file.