MUHASEBE II

1. earn interest revenue.

2. receive dividends.

3. realize gains from increases in the market price of the securities.

Periodically received interest is recorded as interest revenue of the period in income statement. Additionally, cumulative amount of unrealized gains or losses existing in equity section are transferred to income statement at the time the available for sale debt security is terminated. In other words, gains or losses incurred because of changes in fair value during the holding period, are reported in income statement only when they are realized.

• Ownership Percentage is less than 20% “Available for Sale” or “Trading Security”.

• Ownership Percentage is between 20% and 50% “Affiliate”.

• Ownership Percentage is more than 50% “Subsidiary”.

In an investment process, the investing party is called “investor” while invested company is called as “investee”.