Investments include marketable securities, treasury bills, investment certificates, loans, shares in private corporations, and so on. A non-profit organization, for purposes other than generating income, may make loans, or enter into other financial arrangements that resemble investments used in the for-profit sector. Most non-profit organizations are limited by various acts and requirements as to the investments they may hold.
For a discussion regarding the treatment of investment income, see Investment Income
Equity Investments quoted in an active market
These investments should be carried at market value and changes in the fair value should be recognized in the income of the period. (3856.12)
Non-financial investments and other investments such as works of art, would be accounted for at cost, or amortized cost (3856.11; 3051.17)
Investments in organizations that are controlled or subject to significant influence
The accounting for long-term investments where the reporting organization has significant influence over the investee is discussed under Related Entities, Significant Influence.