Abstract:
In the last decades the extraordinay evolution of the capital markets
all over the world has lead to the development of the investment firms (called
S.S.I.F. in Romanian) which have as their regular business the provision of
investment servicies for their clients. They execute orders and manage
portofolios of securities both on behalf of investors and for own account.
Dealing primarly with financial instruments such as stocks, bonds,
derivatives or any other instrument admitted to trading on a regulated
market, the accounting for an investment firm has special characteristics.
Some of these features are studied in the paper through an example which
focuses on acquisitions and sales of shares and bonds executed by the
investment firm on behalf of a retail client taking into consideration the
prices, the types of transactions and the characteristics of the main
Romanian regulated market: Bucharest Stock Exchange. All the transactions
of the exemple are recorded into the Journal-Ledger according to the
accounting regulations used by the investment firms in our country: Order
75/2005 of National Securities Commission (N.S.C.) for the approval of the
Accounting Regulations compliant with the 4th Directive of the European
Economic Communities applicable to the entities authorized, governed and
supervised by N.S.C.
The paper deals with the accounting consequences of these financial
transactions which have the peculiarity of not being executed on own account
and it emphasises their influence on the balance-sheet prepared by the
investment firms. The article also stresses the legal documents and the
specific statements which are used in order to record the transactions into
the Journal-Ledger.
