Investment in Overseas.

[im0rt4l]

Hi,

I am doing accounts for an Investment Marketing company. Basically what we do is we promote the investment and receive money from investors, and send the money to our principal company in overseas. My question is shall i treat this an advance to the Principal company or as an investment ? The principal will repay us back the full amount + capital appreciation.


Any help you can offer would be greatly appreciated.

 

[kirby]

If the contract names you as counterparty then you have an investment on your books. Else you are a conduit and what you receive you pass on. no investment.

 

[im0rt4l]

If the contract names you as counterparty then you have an investment on your books. Else you are a conduit and what you receive you pass on. no investment.

Thanks for the prompt reply.

Yes. We payback everything to the investors, principal amount invested plus any gains. Hence i will record it as an advance.

Regards
im0rt4l