Monetary assets include cash on hand, bank deposits, accounts receivable, notes receivable and held-to-maturity bond investments. Monetary assets include monetary funds and assets that can be recovered at a fixed or determinable amount. Other assets are non-monetary assets, such as inventories, fixed assets, intangible assets, long-term equity investments, and bond investments that are not ready to be held until maturity.
Transactional financial assets refer to bond investment, stock investment and fund investment held by enterprises for trading purposes.
Extended data:
Financial assets that meet one of the following conditions shall be classified as transactional financial assets:
The main purpose of obtaining financial assets is to sell or buy back or redeem them in the near future.
(2) Being a part of the identifiable financial instrument portfolio under centralized management, there is objective evidence that the enterprise recently managed the portfolio in the form of short-term profit.
(3) It belongs to financial derivatives. However, derivatives designated as effective hedging instruments by enterprises belong to financial guarantee contract derivatives, except those linked to equity instrument investments that are not quoted in an active market and whose fair value cannot be reliably measured and must be settled through delivery of equity instruments.
The accounting treatment of transactional financial assets includes three steps:
(1).
(2) Holding period
(3) Disposal
The specific description is as follows:
(1), there are three situations:
(1) When trading financial assets are acquired, the fair value of the financial assets at the time of acquisition shall be taken as the initial recognition amount;
B the price paid for acquiring trading financial assets includes cash dividends that have been declared but not paid, or cash dividends that have reached the interest payment period but have not been received.
Bond interest shall be separately recognized as receivable items;
Transaction costs related to the purchase of transactional financial assets shall be included in investment income when incurred.
The entries are as follows:
Debit: Transactional Financial Assets-Cost
Dividends/interest receivable
yield
Loans: bank deposits/other monetary funds-investment deposits.
(2) There are two things during the holding period:
① Cash dividends and interest obtained during the holding period of trading financial assets. 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 debits the account of "dividend receivable" or "interest receivable" and credits the account of "investment income".
The specific items are as follows:
(1) Receive the dividend/interest included in the purchase price.
Debit: bank deposit
Credit: dividends/interest receivable
(2) Confirm the dividends/interests enjoyed during the holding period.
Debit: Dividends/Interest Receivable
Loan: investment income
Debit: bank deposit
Credit: dividends/interest receivable
② Final measurement of trading financial assets. On the balance sheet date, if the fair value of trading financial assets is higher than its book balance, the account of "Trading Financial Assets-Changes in Fair Value" shall be debited and the account of "Gains and Losses from Changes in Fair Value" shall be credited; If the fair value is lower than its book balance, the opposite accounting entry shall be made.
The specific accounting entries are as follows:
Balance sheet date adjusts book balance at fair value (two-way adjustment).
(1) fair value on balance sheet date >; book balance
Debit: Trading financial assets-changes in fair value
Credit: gains and losses from changes in fair value
(2) The fair value on the balance sheet date
Debit: gains and losses from changes in fair value
Loans: Trading Financial Assets-Changes in Fair Value
(3) When an enterprise disposes of a trading financial asset, it recognizes the difference between the fair value of the trading financial asset at the time of disposal and the initial recorded amount as investment income, and adjusts the gains and losses from changes in fair value.
The specific accounting entries are as follows:
(gradually confirm the investment income)
(1) Confirm the investment income according to the difference between the selling price and the book balance.
Debit: bank deposit
Loan: Transactional Financial Assets-Cost
Transactional financial assets-changes in fair value
yield
⑵ Confirm the investment profit and loss according to the difference between the initial cost and the book balance.
Debit: (or loan) gains and losses from changes in fair value.
Loan: (or borrowing) investment income
References:
Baidu encyclopedia-transactional financial assets