Marketable securities (VMP): how to read them correctly?

Updated March 2026 - Valeurs mobilieres de placement (VMP — marketable securities) are financial instruments acquired as short-term cash placements by companies that hold surplus liquidity. The French General Chart of Accounts (Plan comptable general, PCG) defines them as securities purchased with the intention of realising a gain in the near term — in other words, to put excess cash to work rather than letting it sit idle in a non-interest-bearing current account. Unlike equity investments held for strategic influence, VMP serve a purely financial purpose. In 2026, the application of ANC regulation n°2022-06 has updated certain accounting treatments.

See also corporate cash investment strategy, cash management and analytical accounting.

A VMP is a financial security held temporarily by a company seeking to earn a return on excess cash. The defining criterion is intent: the company purchases these instruments to generate capital gains or financial income over the short term, not to gain control or influence over the issuer.

When the securities are shares, they must represent less than 10% of the issuer's share capital. Above that threshold, the classification typically shifts to equity investments (titres de participation), which follow a different accounting and financial logic.

The main types of VMP encountered in practice include:

• ▸listed shares (account 503);
• ▸other ownership-representing securities (account 504);
• ▸bonds (account 506);
• ▸Treasury bills and short-term deposit certificates (account 507);
• ▸UCITS units (money market SICAVs, bond funds, equity funds) through account 508;
• ▸other marketable securities and similar receivables (account 508).

All of these are recorded in class 50 of the PCG, placing them within current assets (actif circulant) on the balance sheet, under financial accounts.

VMP are shown under current assets, in the financial accounts section (class 50). This classification is not incidental: it signals that these securities are considered available or realisable in the short term, as opposed to financial fixed assets (class 26), which reflect long-term holdings.

In the balance sheet presentation, VMP are clearly distinguished from cash and cash equivalents (accounts 512 and below: bank, petty cash). This distinction is essential for financial analysis. A company may display a high total of "VMP + cash" while having low immediately available liquidity, because some VMP cannot be converted to cash without delay or without capital loss risk.

Hayot Expertise insight: never conflate VMP and cash when analysing net treasury position. VMP carry market risk and liquidation delays that pure cash does not.

Acquisition

Upon purchase, VMP are recorded at their acquisition cost, which includes the purchase price of the securities plus all directly attributable costs (brokerage fees, commissions). The accounting entry debits the relevant class 50 account (503 for shares, 506 for bonds, etc.) and credits account 512 Bank or a third-party account.

Income generation

VMP generate financial income that improves the company's financial result. Dividends received on shares and interest on bonds are recognised as financial income under account 764 "Income from marketable securities". This line feeds directly into the income statement and affects corporate income tax.

Year-end depreciation

The principle of prudence requires that a depreciation provision be recognised when the market value of VMP falls below their carrying amount at the closing date. This depreciation is recorded by debiting account 68665 "Depreciation charges on VMP" and crediting account 590 "Depreciation of marketable securities".

Conversely, an unrealised gain (market value above acquisition cost) is never recognised. This is a direct application of the accounting prudence principle: probable losses are recorded, but expected gains are not.

Disposal of VMP

Upon sale, only the net gain or loss is recorded. Since 1 January 2025, following ANC regulation n°2022-06, the accounts used are:

• ▸account 7673 "Net gains on disposal of VMP" for capital gains;
• ▸account 6673 "Net losses on disposal of VMP" for capital losses.

Any previously established depreciation provisions must be reversed through account 78665 "Reversals of VMP depreciation".

Consider a concrete example. A company purchases 1,000 shares at 40 euros each on 1 January N (40,000 euros recorded in account 503). On 1 September N, it sells these shares at 50 euros each. The recording is done in two steps: recognition of the 50,000 euro receipt credited to account 7673, and removal of the securities at their carrying value of 40,000 euros debited to the same account 7673. The net gain is 10,000 euros.

VMP are part of an investment policy that should be formally documented. Before any investment, the company must answer several questions:

• ▸what portion of cash is genuinely surplus and available?
• ▸for how long can this surplus be committed?
• ▸what level of risk is the company willing to accept?
• ▸what are the actual liquidation timelines for each instrument?

A money market SICAV offers near-immediate liquidity with minimal risk but modest returns. An equity fund may offer higher returns but exposes the company to significant volatility. Medium-term bonds carry interest rate risk if they need to be sold before maturity.

The classic mistake is investing cash needed in the short term — for supplier payments, payroll or tax deadlines — into illiquid or volatile instruments.

The French Financial Markets Authority (AMF) reminds investors that all financial investments carry risk. For corporate VMP, the main risks are:

• ▸market risk: the value of securities can decline due to market conditions, interest rate movements or economic downturns;
• ▸liquidity risk: some instruments cannot be converted to cash immediately or impose redemption delays;
• ▸counterparty risk: the issuer may encounter financial difficulties affecting the security's value;
• ▸interest rate risk: particularly relevant for bonds, whose value mechanically falls when rates rise.

These risks must be assessed and documented, particularly in the notes to the annual accounts where the company presents its valuation methods and any depreciation recognised.

Analysing VMP in a company's annual accounts requires cross-referencing several sources of information:

• ▸the balance sheet: gross VMP amount (account 50), depreciation (account 590), and net value;
• ▸the income statement: VMP income (account 764), gains or losses on disposal (accounts 7673 / 6673), depreciation charges and reversals (accounts 68665 / 78665);
• ▸the notes: breakdown by type of VMP, valuation methods, depreciation amounts and their evolution, any off-balance-sheet commitments.

A manager or analyst who only looks at the net balance sheet figure would miss essential information: portfolio composition, risk level, investment policy and coherence with actual cash needs.

Hayot Expertise insight: never review VMP without verifying their time horizon, actual liquidity, risk level and coherence with your treasury policy. A high-performing investment on paper can become a management error if the cash was actually needed within 30 days.

What is the difference between a VMP and an equity investment?

The difference lies in the holding intention and the level of ownership. A VMP is acquired for short-term gain and typically represents less than 10% of the issuer's capital. An equity investment is held long-term with strategic intent, often with influence over the issuer's governance. In accounting terms, VMP are in class 50 (current assets) while equity investments are in class 26 (financial fixed assets).

How are capital gains on VMP disposals taxed?

Capital gains on VMP disposals are included in the company's taxable income and subject to corporate income tax at the applicable rate. Financial income received (dividends, interest) is also taxable. The exact regime depends on the nature of the security, the holding period and the company's size. Consulting a chartered accountant is recommended to optimise the taxation of financial investments.

Must a provision be created if a VMP's value drops?

Yes. Under the PCG's prudence principle, if the market value of a VMP is below its carrying amount at the closing date, the company must recognise a depreciation (account 590, debited to account 68665). This depreciation is reversible: if the value recovers in a subsequent period, the provision can be partially or fully reversed through account 78665.

Are money market SICAVs classified as VMP?

Yes. Units in money market SICAVs and UCITS are generally classified as VMP (account 508) when held for short-term cash investment purposes. Their low volatility and high liquidity make them a common vehicle for corporate cash surpluses, even though their returns remain modest.

Which PCG account should be used for VMP?

The PCG provides several accounts depending on the type of security: 502 for treasury shares, 503 for shares, 504 for other ownership securities, 506 for bonds, 507 for Treasury bills and short-term certificates, and 508 for other VMP. Since 2025, disposals use accounts 7673 (gains) and 6673 (losses), in accordance with ANC regulation n°2022-06.

CTA: Review your short-term placements and their accounting treatment

In 2026, understanding VMP properly means connecting the investment logic, the accounting treatment and the risk assessment into a single analysis. Marketable securities are neither pure cash nor fixed assets: they occupy an intermediate zone that requires particular vigilance. Between PCG rules, the changes introduced by ANC regulation n°2022-06 and market risks, the accounting and management of VMP demand a rigorous framework.

Want to verify that your short-term treasury placements are correctly read and treated in your accounts? Our firm can help you clarify their role and treatment. Book an appointment with an expert

(Official sources: ANC Plan Comptable General on VMP accounting, AMF on investment risks, Banque de France on corporate financing, Compta Online on VMP accounting, PlanComptable.com on class 50 accounts)