Investments, Essence and types of investments - Finance and credit

Chapter 9. Investments

9.1. Essence and types of investments

Investments are long-term investments of capital in various spheres of entrepreneurial activity in order to obtain current income or to ensure an increase in its value in the future period.

For accounting, analysis and planning purposes, investments are classified according to certain criteria:

(1) for investment objects - direct (real) investments and financial (portfolio) investments;

(2) by forms of ownership of investment resources - private investment, public investment, joint investment;

(3) on a regional basis - domestic investment (domestic investment), foreign investment (investment abroad).

(4) for the period of investment distinguish short-term financial investments (investing funds for a period of up to one year) and long-term financial investments (investing funds for a period of more than one year).

Direct (real, capital-forming) investments are investments in the creation of new and reproduction of existing fixed assets (capital investments) and in increasing the working capital necessary for their operation.

Real investments are carried out in the following main forms:

(1) acquisition of integral property complexes;

(2) new construction;

(3) reconstruction;

(4) modernization;

(5) acquisition of certain types of tangible and intangible assets (renewal or increase of certain types of fixed assets, increment of inventories, purchase of new software products, trademarks, patents, know-how and other intangible assets) volumes and growth of efficiency of economic activity of the organization in the future period.

Financial (portfolio) investments are investments in various financial instruments (mainly securities), the aggregate of which is an investment portfolio.

Investment activities (a set of practical investor actions for the implementation of investments) is regulated by law. The adoption of laws and other normative acts regulating investment activity is one of the most important conditions for the implementation of the state investment policy. Legislative bases of this policy regulate investment activity in various forms:

(1) highlighting priority areas and investment objects;

(2) tax regulation of investment activities;

(3) regulation of investment activity by providing financial assistance to investors and conducting appropriate credit policies;

(4) regulation of investment activities through the implementation of an appropriate depreciation policy;

(5) regulation of investors' participation in privatization;

(6) regulation of forms and conditions for the implementation of financial investments;

(7) examination of investment projects in the development of public investment programs;

(8) regulation of conditions for export of capital for investment abroad.

The level of legal regulation of investment activity is one of the most important elements characterizing the investment environment or the "investment climate" in the state.

General questions of regulation of investment activity are defined in the Federal Law "On investment activity in the Russian Federation, carried out in the form of capital investments". (1999). This Law contains the following definition: "... investments - monetary funds, securities, other property, including property rights, other rights having monetary value, invested in objects of entrepreneurial and/or other activity for profit and/or achieve a different useful effect. "

The subjects of investment activity are investors, customers, executors, users of investment activity objects, as well as other legal entities - participants in the investment process (banks, insurance organizations, investment funds). The subjects of investment activity may also be individuals, states and international organizations, foreign legal entities and individuals.

Investors invest their own, borrowed and attracted funds in the form of investments and ensure their targeted use.

Customers can be investors, as well as any other legal and natural persons authorized by the investor to implement investment projects.

Users of investment activity objects can be investors, as well as other legal and natural persons, state and municipal bodies, foreign states and international organizations for whom an investment activity object is being created. In the event that the user of the investment activity object is not an investor, the relationship between him and the investor is determined by the investment agreement (decision).

The subjects of investment activity have the right to combine the functions of two or more participants.

The objects of investment activity are newly created and modernized fixed assets, working capital; securities, special cash deposits, scientific and technical products, other property objects, property rights and intellectual property rights.

The law prohibits investing in facilities, the creation and use of which does not meet the requirements of environmental, sanitary and other standards established by legislation in force in the United States. or damages the rights protected by law and the interests of citizens, legal persons and the state.

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