How would the margin requirement be accounted by a commodity trading organization?
March 6th, 2008
Canuk asked:
If you are a commodity trading organization trading futures and the brokerage needs a margin requirement — how is that accounted for in the financial statements? Is it an expense in the income statement?
SLAYMAKER
If you are a commodity trading organization trading futures and the brokerage needs a margin requirement — how is that accounted for in the financial statements? Is it an expense in the income statement?
SLAYMAKER
For as other receivables maintained in sub account called amounts owning from brokers it is balance sheet account called amounts owning from brokers including the margin requirement is accounted for as other receivables maintained in sub account under current assets.
For as other receivables maintained in sub account under current assets.