in the new accounting standards, the accounting subject of short-term investment has been cancelled and changed to the accounting subject of "transactional financial assets". So, has the corresponding business treatment changed? After a careful look at the contents of the accounting standards, I think it's just a name change, and there is no big change in the specific accounting treatment. Let's take a look at this example to understand the accounting of the accounting subject of trading financial assets:

On May 2, 27, Company A bought 6, shares of Company B as trading financial assets for 4.6 million yuan (including 2, yuan of declared but undistributed cash dividends), and paid a handling fee of 1, yuan; Received cash dividend on May 2, 27; On June 3, 27, the stock price per stock market was 7.5 yuan; By December 31st, Company A still held the trading financial assets, and the price per stock market at the end of the period was 8 yuan. On January 3rd, 28, the trading financial assets were sold for 4.9 million yuan.

May 2, 27

Debit: trading financial assets-cost 44

Dividend receivable 2

Investment income 1

Loan: Bank deposit 47

Cash dividend was received on August 2, and it was declared as undistributed cash dividend. Now it has been distributed and received. It was previously accounted for as dividends receivable, and now it has been received.

Debit: bank deposit 2

Loan: dividend receivable 2

Stock market price per share in 7.5 yuan on June 3. We bought 6, shares, which is the current market price of 4.5 million. The cost in the book is only 4.4 million. We need to adjust it to 4.5 million.

Debit: trading financial assets-changes in fair value 1

Loan: gains and losses from changes in fair value 1

On December 31st, the stock price was 8 yuan, and we had 6, shares, which was 4.8 million. And our book value is only 4.5 million, now it is adjusted to 4.8 million.

borrowing: trading financial assets-fair value change 3

lending: fair value change gain and loss 3

selling financial assets on January 3

borrowing: bank deposit 49

lending: trading financial assets-cost 44

-fair value change 4

investment income 1

. The cost of the lender is the cost initially recognized. If the financial asset is sold, it can't be kept in the account. Put it in the lender (because it was put in the borrower at the time of initial recognition). So there is no cost. The change of fair value depends on the balance direction of the detailed account at the time of sale. The first two changes in fair value in this topic are in the debit side, so the balance is in the debit side and transferred out from the credit side. There will be no change in fair value. The difference confirms the investment income. Investment income is not necessarily in the lender. If the book value of trading financial assets is greater than the actual price received, the difference of investment income is of course in the borrower.

note that the last step is to carry forward the gains and losses from changes in fair value.

debit: fair value change gain and loss 4

credit: investment income 4

The direction of this entry is the same. The balance of the previous fair value change profit and loss is in the credit, so it is put in the debit here. The other subject is investment income.