The new accounting standards stipulate that financial assets that meet one of the following conditions should be classified as transactional financial assets:

Confirmation of transactional financial assets

1. The main purpose of obtaining this financial asset is to sell it in the near future.

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.

3. Derivatives, mainly options and futures, except 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 the equity instruments.

As can be seen from the above three conditions of transactional financial assets, financial assets must meet the following conditions to be classified as transactional financial assets:

The purpose of obtaining this financial asset is mainly to sell it in the near future and obtain the price difference, and the purpose of holding this financial asset is to make a short-term profit when the enterprise first confirms it. Therefore, under the old standards, short-term investments only for the purpose of selling profits should belong to transactional financial assets.

The financial asset must exist in the active trading market and be quoted in the market, so as to obtain its fair value through the active market or its fair value can be measured reliably, and the asset can be realized at any time.

The financial assets can be stocks, bonds, fund units, or derivative financial instruments with stocks or other financial instruments as the target, but they must be measured at fair value and their changes are included in the current profits and losses.

(A) the initial measurement of trading financial assets

1. Booking cost = purchase price-cash dividend declared undistributed (or-interest not received due);

2. Transaction costs are included in the debit of investment income, including fees and commissions paid to agencies, consulting companies and brokers and other necessary expenses.

General entries are as follows:

Debit: Trading financial assets-cost (measured at fair value)

Investment income (transaction cost)

Dividends receivable (interest receivable)

Loan: Bank deposit (paid total price)

(2) Subsequent measurement of transactional financial assets

1. accounting principles

Transactional financial assets are subsequently measured at fair value, and changes in fair value are included in current profits and losses.

2. General accounting entries

① When the fair value is greater than the book value:

Debit: Trading financial assets-changes in fair value

Credit: gains and losses from changes in fair value

② When the fair value is lower than the book value:

Debit: gains and losses from changes in fair value

Loans: Trading Financial Assets-Changes in Fair Value

(3) When the dividend or interest is declared due.

Debit: Dividend receivable (or interest receivable)

Loan: investment income

(4) When receiving cash dividends or interest.

Debit: bank deposit

Credit: Dividends receivable (interest receivable)

(5) At the time of disposal

Debit: Bank deposit (net selling price)

Gains and losses from changes in fair value (net increase in fair value during holding period)

Loan: Trading financial assets (book balance)

Investment income (inverted logo, loss recorded as debit, income recorded as credit)

Gains and losses from changes in fair value (net depreciation of fair value during holding period)

The main points suggest that the common test indicators of trading financial assets are: ① the calculation of investment income when trading financial assets are sold; (2) Calculation of investment income realized during the holding period of trading financial assets. When calculating the investment income of trading financial assets during the sale period, the initial cost of trading financial assets should be directly deducted from the net selling price, regardless of the change of fair value during the holding period, because the temporary change of value will only be transferred to the investment income when it is finally sold, and the investment income during the sale period can be determined by directly subtracting the entry cost from the net selling price. However, it is a bit cumbersome to calculate the investment income during the holding period, and it is necessary to spell out the investment income of the three links. The second is the accrued interest income or investment income confirmed when dividends are announced; The third is the investment income at the time of transfer.

What are the accounting principles of transactional financial assets?

(1) Determination of initial acquisition cost. The fair value is initially measured, and the transaction costs are included in the current profit and loss, which should be reflected in the debit of investment income; If the actual payment includes the declared but unpaid cash dividend or overdue bond interest, it should be included in the "dividend receivable" or "interest receivable" instead of the "cost of trading financial assets", because the past cash dividend or bond interest has not been collected yet and cannot form the current cost of trading financial assets.

(2) When confirming the cash dividend or bond interest, if the cash dividend or interest received belongs to the receivable items that have been included at the time of acquisition, the dividend receivable shall be offset; On the other hand, if it does not belong to, that is, the date of purchase does not include declared unpaid cash dividends or interest, it is recognized as investment income.

(3) Changes in fair value on the balance sheet date are directly included in the current profit and loss. The new standard stipulates that if the fair value of trading financial assets changes on the balance sheet date, the enterprise shall include the changed amount in the current profit and loss. The application equation is: fair value change amount = new fair value-book value of trading financial assets. If the fair value is greater than the book value (positive value), debit "trading financial assets-changes in fair value". At the same time, credit "gains and losses from changes in fair value". If the fair value is less than the difference (negative value) of the book value, the "gains and losses from changes in fair value" will be debited and the "trading financial assets-changes in fair value" will be credited at the same time.

(4) Disposal of trading financial assets at the end of the period. The "new standard" stipulates that the difference between the book value of the financial assets carried forward for trading and the actual payment is recognized as the current profit and loss (that is, "investment income"). If the book value is greater than the actual payment, it will be reflected in the debit of the investment income, and if the book value is less than the actual payment, it will be reflected in the credit of the investment income; And the cumulative number of "fair value change gains and losses" is transferred to "investment income".