What Are The Classifications Of Gains And Losses?
Profits and losses are divided into two types One is direct Gains or losses included in owners' equity; one is gains or losses directly counted into current profits. In other words, profits and losses will be reflected in the balance sheet (or owner's equity change and income statement) and profit statement.
Profits or losses will involve a lot of businesses.
Gains or losses included in current profits include: loss of inventory, loss, loss of public interest, expenditure on profit, profit from government, subsidies, gains from profits, gains or losses in disposing of illiquid assets, gains or losses in exchange for non monetary assets, gains or losses from debt rescheduling, etc.
Profits or losses generally included in current profits are accounted for by "non operating income" and "non operating expenses".
Gain or interest in owner's equity. loss In general, accounting for capital surplus (other capital reserves) accounts, common businesses have capital gains that are increased or reduced according to the share that the fair value of the available financial assets can be included in the owner's equity and other equity changes except the net profit and loss of the investor.
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