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 in the form of short-term profit. If a group of stocks purchased by a fund company is for the purpose of short-term profit, the combined stocks should be regarded as trading financial assets.

(3) derivatives. That is, under normal circumstances, the purchased futures and other derivatives should be regarded 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.

How to set up a trading asset account

1, "Trading Financial Assets" accounts for the fair value of trading financial assets such as bond investment, stock investment and fund investment held by enterprises for trading purposes.

(1) The financial assets directly designated by the enterprise and measured at fair value and whose changes are included in the current profits and losses are also accounted for in the subject of "transactional financial assets".

Debit-the difference between the acquisition cost of a registered trading financial asset and its fair value higher than the book balance on the balance sheet date.

Creditor-the difference between the fair value and the book balance on the balance sheet date, and the cost carried forward when the enterprise sells the trading financial assets.

(2) Detailed accounts of this account, the enterprise shall set up detailed accounts such as "cost" and "fair value change" according to the categories and varieties of trading financial assets for accounting.

2. "Gains and losses from changes in fair value" accounts for gains or losses arising from changes in the fair value of trading financial assets of enterprises that should be included in the current profits and losses.

3 "investment income" accounts for the investment income obtained by the enterprise during the holding of trading financial assets and the investment income or investment loss realized by the disposal of trading financial assets.

What items do trading financial assets include? The most common are stock trading and bond trading. It can be said that the purpose of holding trading financial assets is to sell, so the gains or losses obtained from it are included in the current profits and losses, that is, the investment income account. Please consult our professional teacher for more answers. Thank you for reading.