Basic Accounting Knowledge: Pactional Financial Assets

1. This subject calculates the fairness of trading financial assets held by enterprises for the purpose of trading, such as bond investment, stock investment and fund investment.

The financial assets that are directly designated by the enterprise as fair value and whose changes are included in the profits and losses of the current period are also accounted for in this subject.

Securities that are underwritten by an enterprise (Finance) entrusted by full underwriting, underwriting and underwriting shall be classified when the securities are received.

Divided into fair

Derivative financial assets are accounted for in the "derivatives" subjects.

Two, the items can be divided into "cost" and "fair value change" according to the categories and varieties of tradable financial assets.

Three, the main accounting treatment of trading financial assets.

(1) an enterprise obtains the paction financial assets, debits the subject (cost) according to its fair value, and debit "investment income" according to the paction cost. According to the interest that has been paid but not yet received, or the cash dividend that has been declared but not yet paid, it debit "interest payable" or "Dividend Receivable" subject, and credits the "bank deposit", "deposit central bank funds", "settlement reserve fund" and other subjects according to the actual amount paid.

(two) the cash dividends declared by the investment entity during the holding of the trading financial assets, or the interest calculated on the balance sheet date by the interest rate paid by the installments and the coupon rate of one return bond investment, shall be debited "receivable dividends" or "interest receivable" subjects, and credits "investment income" subjects.

(three) on the balance sheet date, the fair value of trading financial assets is higher than the balance of its book balance, debit the subject (fair value change), credit the "fair value change profit and loss" subject, and the fair value is below the balance of its book balance as the opposite accounting entry.

(four) the sale of pactional financial assets shall be debited according to the amount actually received, such as "bank deposit", "deposit of central bank funds", "settlement reserve fund" and so on. According to the book balance of the financial assets, credit is credited to this subject, and the "investment income" subject is credited or debited according to its balance.

At the same time, the fair value change that was originally included in the financial asset should be pferred out, debit or credit the "fair value change profit and loss" subject, and credit or debit "investment income" subject.

Four. The debit balance at the end of the subject reflects the fair value of the paction financial assets held by the enterprise.