Transactional financial assets are one of the key test sites in the Primary Accounting Practice of the primary accounting examination, which mainly includes the subject setting of transactional financial assets, the accounting treatment of transactional financial assets and the concept of financial assets.

what are the subjects for trading financial assets?

Transactional financial assets refer to financial assets held by enterprises for short-term investment income and sold in the near future, usually including financial products such as stocks, bonds and funds purchased from the secondary market for the purpose of earning the price difference.

the account setting of trading financial assets mainly includes the subjects of "trading financial assets-cost" and "trading financial assets-fair value change", or the corresponding detailed accounts are set according to the categories and varieties of financial assets.

how to account for trading financial assets?

1. Obtaining transactional financial assets

Borrowing: transactional financial assets-cost (fair value at the time of acquisition)

Dividends receivable/interest receivable (cash dividends declared but not yet paid in the purchase price or interest that has not been paid in the interest payment period)

Investment income (transaction costs incurred)

Taxes payable-VAT payable (input tax). After the investment, you receive the declared cash dividend or interest included in the purchase but not yet paid

Borrow: other monetary funds/bank deposits

Loan: dividend receivable/interest receivable

3, Cash dividends or interest obtained during the holding period of trading financial assets

Debit: dividends receivable (cash dividends announced by the investee × investment shareholding ratio)

interest receivable (interest receivable calculated on the balance sheet date)

Loan: investment income

4. Measuring trading financial assets at the end of the period, The increase and decrease of fair value of trading financial assets are indicated by the subject of "changes in fair value gains and losses"

Debit: changes in fair value

Loan: changes in fair value gains and losses

5, Sale of trading financial assets

Borrowing: other monetary funds (actually received amount)

Lending: trading financial assets-cost (fair value at the time of acquisition)

trading financial assets-changes in fair value (cumulative changes in fair value, which may also be debited)

Investment income (difference, which may also be debited)

6.

financial assets refer to assets owned by units or individuals in the form of value, and are the general name of all financial instruments that can be traded in organized financial markets and have realistic prices and future valuations. The biggest feature of financial assets is that they can provide their owners with immediate or long-term monetary income flows in market transactions. Financial assets usually include cash on hand, bank deposits, accounts receivable, bills receivable, other monetary funds, loans, other receivables, equity investments, debt investments and assets formed by derivative financial instruments.

according to the requirements of the Accounting Standards for Enterprises No.22-Recognition and Measurement of Financial Instruments, enterprises classify financial assets into three categories according to their business model of managing financial assets and the characteristics of contractual cash flow of financial assets:

1. Financial assets measured in amortized cost;

2. Financial assets measured at fair value and whose changes are included in other comprehensive income;

3. Financial assets measured at fair value and whose changes are included in current profits and losses.