Shares are classified as financial assets which enterprises purchase and own for the sake of additional money resoures and for the sake of acquiring a certain stake in other enterprises. From accounting perspective, shares need to undergo certain record, which is accordant to International and Croatian standards of accountancy, as well as financial stating standards. Depending on what the intention of the enterprise is, different accounting and tax treatment will be made. After the purchase of shares, enterprise is required to put them on accounting record. Accounting treatment of shares begins with the acceptance of shares and ends with stoppage of acceptance, when shares are sold. Enterprise has the right of various classification of purchased shares. The most common classifications are either classification by fair value through profit or loss and classification as assets avaliable for sale. Based on this classification, the initial and afterwards measurement of the shaares is being made. As a result of this measurement process, either loss or profit is made. Both loss and profit are arranged on certain accounts and undergo certain tax treatment. While doing the reasearch of this topic, mostly domicile accounting and auditing literature was used, along with certain laws expressed in The Accounting Law and both International and Croatian accountancy standards. Also, methods of analysis, synthesis, comparation and compilation were used during the making of this work.