The two companies are: Apple and Microsoft. Apple and Microsoft are two companies that show long-term investments on their balance sheets.
- Apple classifies its long-term investments as "Available-for-sale securities," which means it intends to hold them for more than one year.
- Microsoft classifies its long-term investments as "Held-to-maturity securities," which means it intends to hold them until maturity.
Company Long-term investment classification Financial statement
Apple Available-for-sale securities Balance sheet
Microsoft Held-to-maturity securities Balance sheet
Long-term investments are presented on the balance sheet as a separate line item under the "Investments" category.
Lastly, Held-to-maturity securities are reported at amortized cost, while trading securities are reported at fair value. Available-for-sale securities are reported at fair value, with changes in fair value recognized in OCI until the investment is sold.