What subjects do trading financial assets belong to

Trading financial assets belong to the allowance subjects of assets. According to the requirements of accounting standards, enterprises should set up the following three subjects to account for trading financial assets:

1. The "trading financial assets" account for the fair value of trading financial assets such as bond investment, stock investment and fund investment held by enterprises for trading purposes.

2. The "gains and losses from changes in fair value" account for the gains or losses that should be included in the current profits and losses caused by changes in fair value of trading financial assets of enterprises.

The "investment income" account for the investment income obtained by enterprises during the holding of trading financial assets and the investment income or loss realized by disposing of trading financial assets.

accounting entries for trading financial assets

1. When an enterprise obtains trading financial assets, it

borrows: trading financial assets-costs (fair value, interest that has not been paid but has not been paid, or cash dividends that have been declared but not yet paid)

investment income (transaction costs incurred)

dividends receivable (declared but not yet paid)

Interest receivable (interest that has not been collected by the interest payment period)

Loan: bank deposit (actually paid amount)

2. During the period of holding trading financial assets, the invested company announced the payment of cash dividends or calculated the interest according to the bond coupon rate on the balance sheet date

Borrow: dividend receivable

Interest receivable

Loan: investment income

3. Received cash dividend or bond interest

Debit: bank deposit

Loan: dividend receivable

interest receivable

4. On the balance sheet date, Difference between fair value of trading financial assets and book balance

Debit: trading financial assets-change in fair value (difference between fair value and book balance)

Loan: gain and loss from change in fair value

Debit: gain and loss from change in fair value

Loan: change in fair value (difference between fair value and book balance) When selling trading financial assets, According to the amount actually received, we should

borrow: bank deposits (actually received amount)

investment income (disposal loss)

trading financial assets-change in fair value (difference between fair value and book balance)

lend: trading financial assets-cost

trading financial assets-change in fair value (difference between fair value and book balance). According to the amount originally recorded in the subject of "changes in fair value",

Borrow: gains and losses from changes in fair value (the difference between fair value and book balance)

Loan: investment income

Loan: gains and losses from changes in fair value (the difference between fair value and book balance)

Let's explain here what subjects trading financial assets belong to first.