Long-term investments refer to the investments that are not readily marketable or that management does not intend to convert into cash within the next year or operating cycle, whichever is longer.
Long-term investments in available-for-sale securities area reported at fair value. Investments in common stock accounted for under the equity method are reported at their equity value.
Long-term investments are generally investments stocks and bonds of other companies that are normally held for many years. This category also includes investments in long-term assets such as land or buildings that a company is not currently using in its operating activities.