1. What is the borrower of the change in fair value?
Gains and losses from changes in fair value refer to changes in the fair value of some products or assets invested by the company due to fluctuations in the prices of financial instruments and other factors in a certain period of time, thus affecting the company's revenue and expenditure.
In accounting, this effect will be recorded in the income statement and expressed as a debit. Specifically, the debit of gains and losses from changes in fair value refers to the loss caused by the decline in fair value related to a financial instrument during the accounting period.
2. Factors affecting the gains and losses from changes in fair value
Fair value is the price of observable financial instruments in the market, which is influenced by many factors such as market supply and demand, policy changes and macroeconomic environment. The fluctuation of fair value is also related to the types of financial products, such as stocks, funds, bonds and other different types of products, and the reasons and amplitude of price fluctuations may also be different.
At the same time, the company's strategy and risk tolerance when choosing investment products will also affect its fair value profit and loss.
3. How to deal with changes in fair value?
In actual operation, the company should pay attention to avoiding the risks caused by fair value fluctuation, control the scale and dispersion of investment, and consider a more stable investment strategy.
For the fair value loss that has occurred, the company can take certain risk prevention and adjustment measures, such as increasing investment varieties and optimizing the position structure. In addition, companies can also use some risk hedging tools, such as futures and options, to hedge some risks of fair value loss.
To sum up, the debit of fair value change profit and loss is an accounting subject that reflects the negative impact of fair value fluctuation of enterprise financial instruments on profit and loss. Companies should pay attention to avoiding the risks brought by fair value fluctuations and take appropriate risk prevention and adjustment measures.