How would the margin requirement be accounted by a commodity trading organization?
February 15th, 2008 | by Adam |
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?
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?
One Response to “How would the margin requirement be accounted by a commodity trading organization?”
By Jo on Feb 18, 2008 | Reply
The amount with the futures brokers, including the margin requirement is accounted for as “other receivables”, maintained in a sub account called “Amounts owning from brokers”. It is a balance sheet account, under current assets.