Accounting entries for purchasing private equity funds
This can be regarded as a transactional financial asset:
1. At the time of purchase:
Debit: Transactional Financial Assets-Cost
Loans: bank deposits and other monetary funds.
2. If the purchased fund is to be sold again in the next year, the difference between the net value of the fund and the purchase cost should be calculated at the end of the year.
Debit: Trading financial assets-changes in fair value
Credit: gains and losses from changes in fair value
Transactional financial assets refer to financial assets measured at fair value and whose changes are included in current profits and losses, and also refer to financial assets held by enterprises for sale in the near future, including stocks, bonds and funds. Enterprises buy from the secondary market and earn the difference.
Financial assets that meet one of the following conditions shall be classified as transactional financial assets:
1. The main purpose of obtaining financial assets is 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 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.
What are the gains and losses from changes in fair value?
Gains and losses from changes in fair value refer to the measurement of assets after acquisition, that is, the difference between the book value of assets and their fair value at the end of the period when the fair value measurement model is adopted subsequently. The "loss" of gains and losses from changes in fair value is a loss, which represents a loss; "Profit" means income and surplus. Gains and losses from changes in fair value are "losses" or "gains" caused by changes in fair value.
What does the fund include?
Funds have broad and narrow definitions. Broadly speaking, a fund refers to a certain amount of funds set up for a certain purpose. Such as trust and investment funds, provident funds, insurance funds, retirement funds and various foundations. People usually refer to funds mainly as securities investment funds.
According to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds.
(2) According to different organizational forms, it can be divided into corporate funds and contractual funds.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds and futures funds.