Therefore, on the balance sheet date, the purpose of provision for impairment is to truly reflect the current profit and loss. Only when the value of available-for-sale financial assets changes can the previously recognized capital reserve be converted into investment income and included in the current profit and loss.
Financial assets directly designated by the enterprise and measured at fair value and whose changes are included in the current profit and loss are also accounted for in the subject of "transactional financial assets". "Trading financial assets" subjects:
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.
Extended data
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.
Baidu encyclopedia-transactional financial assets