① Strong financing ability.

(2) High profitability.

(3) Increased risk.

It may be that a large number of trading financial assets have been newly purchased or disposed of this year; It may also be that the market prices of these transactional financial assets fluctuate greatly. To see the information in the notes to financial statements, the key is to control risks.

Further reading

Transactional financial assets refer to debt securities and equity securities that enterprises intend to make profits through active management and trading. Enterprises usually buy and sell such securities frequently to profit from short-term price changes.

Feature editing speech

1. The purpose of enterprise holding is short-term, that is, it is determined at the time of initial confirmation that its holding purpose is for short-term profit. Generally speaking, the short term here should not exceed one year (including one year);

2. The asset exists in an active market, and its fair value can be obtained through the active market.

3. During the holding period of trading financial assets, no asset impairment loss shall be accrued.

purpose

Investment (accounting as a trading financial asset) and hedging (accounting as a hedging standard)

definition

Definition of transactional financial assets;

According to the Accounting Standards for Recognition and Measurement of Financial Instruments, financial assets or financial liabilities shall be classified as trading financial assets or financial liabilities if they meet one of the following conditions:

(1) The main purpose of obtaining this financial asset is to sell or repurchase it in the near future. For example, the purchased stocks to be held in the short term can be used as trading financial assets.

(2) It is a part of the identifiable financial instrument portfolio under centralized management, and there is objective evidence that the enterprise recently managed the portfolio through short-term profit. If a fund company purchases a batch of stocks for the purpose of making short-term profits, the portfolio stocks shall be regarded as trading financial assets.

(3) It is a derivative instrument. In other words, under normal circumstances, the purchased derivatives such as futures should be used as trading financial assets, because the purpose of derivatives is trading. However, derivatives designated as effective hedging instruments, derivatives belonging to financial guarantee contracts and derivatives linked to equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured and must be settled by delivering equity instruments are excluded, because they cannot be traded at any time.