Income from changes in fair value refers to the subject of trading financial assets measured at fair value and whose changes are included in current profits and losses. On the balance sheet date, if the fair value of "trading financial assets" is higher than its book value, "trading financial assets-changes in fair value" will be debited and "gains and losses from changes in fair value" will be credited; If the fair value is lower than its book value, the opposite entry shall be made. You can also understand "gains and losses from changes in fair value" as you understand the subject of "investment income"

Income from changes in fair value refers to the income from changes in the fair value of assets or liabilities.

Fair value refers to the amount that two familiar parties voluntarily exchange assets or pay off debts in a fair transaction.

Generally speaking, the gains from changes in fair value include the following:

1. Gains and losses from changes in fair value of trading financial assets (such as stocks, bonds, futures, funds, etc.). ).

2. Gains and losses from changes in fair value of investment real estate.

3. Gains and losses from changes in the fair value of derivative financial assets.

4. Gains and losses from changes in fair value of financial liabilities

Under the cost model, the fair value of investment real estate can actually change when it is converted into self-use.

Changes in fair value reflect changes in the fair value of assets. Don't you see that there is an asset-level subject in front of the fair value change? For example, investment real estate-fair value changes. The corresponding rise and fall will form a profit and loss, which will be recorded in the profit and loss category and the fair value change profit and loss.

Fair value changes only when the fair value model is adopted.

Borrow: investment real estate-fair value

Credit: gains and losses from changes in fair value

As assets increase, income increases.

Conversion of investment real estate into self-use

Debit: fixed assets (fair value)

Loan: investment real estate-cost-change in fair value (loanable) change in fair value profit and loss (loanable) change in fair value profit and loss The fair value on the borrower's stated conversion date is lower than the book balance, that is, the price falls, and this wave of conversion is a loss. Lenders indicate that the fair value on the conversion date is higher than the book balance of investment real estate, that is, the price has increased.