Long-term Investments
Accounting glossary · Understand, connect, apply
Long-term investments are investments classified as noncurrent, rather than held for trading or expected to be realized in the short term. They can include certain debt, equity and property investments.
Example
Shares held as a long-term strategic investment may be presented as noncurrent if the applicable rules support that classification.
Remember the difference
Classification, measurement and presentation depend on the investment’s nature and the reporting framework, not just management’s label.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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