Transactional financial assets are non-monetary assets

Monetary assets include cash on hand, bank deposits, accounts receivable, notes receivable, and bond investments to be held to maturity. Monetary assets include monetary funds and assets that can be collected at a fixed or determinable amount. Other assets belong to non-monetary assets, such as inventory, fixed assets, intangible assets, long-term equity investment, and bond investment that is not ready to be held until maturity.

Trading financial assets refer to bond investment, stock investment and fund investment held by enterprises for trading purposes.

Extended information:

Financial assets that meet one of the following conditions shall be classified as transactional financial assets:

(1) The purpose of obtaining financial assets is mainly to sell or repurchase or redeem them 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 has recently managed the portfolio by making short-term profits.

(3) It belongs to financial derivatives. However, the derivative instruments designated as effective hedging instruments by the enterprise belong to the derivative instruments of financial guarantee contracts, except those that are linked to the investment in 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.

The accounting of trading financial assets includes three steps:

① Obtaining

② Holding period

③ Disposal

The details are as follows:

① When obtaining, there are three situations:

A. When obtaining trading financial assets, the fair value of the financial assets at the time of acquisition shall be taken as its initial recognition amount;

B. if the price paid for acquiring trading financial assets includes cash dividends that have been declared but not yet paid or interest on bonds that have reached the interest payment period but have not yet been received, it shall be separately recognized as accounts receivable;

C. The relevant transaction costs incurred in obtaining trading financial assets should be included in the investment income when they occur.

The entries are as follows:

Borrowing: trading financial assets-cost

dividends receivable/interest

investment income

Lending: bank deposits/other monetary funds-investment funds deposited

2 There are two things during the holding period. When the investee announces the payment of cash dividends during the holding of trading financial assets or calculates the interest according to the bond coupon rate on the balance sheet date, it shall debit the account of "dividend receivable" or "interest receivable" and credit the account of "investment income".

the specific entries are as follows:

(1) dividend/interest included in the purchase price

debit: bank deposit

loan: dividend receivable/interest

(2) dividend/interest enjoyed during the holding period

debit: dividend receivable/interest

loan: investment income

debit: bank deposit

. On the balance sheet date, if the fair value of trading financial assets is higher than its book balance, debit the account of "trading financial assets-changes in fair value" and credit the account of "gains and losses from changes in fair value"; If the fair value is lower than its book balance, the opposite accounting entry shall be made.

The specific accounting entries are as follows:

Adjust the book balance at fair value on the B/S table date (adjustment in both directions)

(1) Fair value on the B/S table date > ; Book balance

Debit: trading financial assets-changes in fair value

Loan: gains and losses from changes in fair value

(2) B/S fair value on the table date < ; Book balance

Debit: gains and losses from changes in fair value

Loan: trading financial assets-changes in fair value

(3) When an enterprise disposes of a trading financial asset at the time of disposal, the difference between the fair value of the trading financial asset at the time of disposal and the initial recorded amount is recognized as investment income, and the gains and losses from changes in fair value are adjusted at the same time.

the specific accounting entries are as follows:

(recognizing investment income step by step)

(1) recognizing investment income according to the difference between selling price and book balance

debit: bank deposit

loan: trading financial assets-cost

trading financial assets-fair value change

investment income

(2) recognizing investment income according to the difference between initial cost and book balance.