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?
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.
Categorized | Commodity Trading
How would the margin requirement be accounted by a commodity trading organization?
Posted on 17 March 2010.
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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.
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