How would the margin requirement be accounted by a commodity trading organization?


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.

Posted March 17th, 2010 by admin 1 Comment » This entry was posted on Wednesday, March 17th, 2010 at 1:39 pm and is filed under Commodity Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “How would the margin requirement be accounted by a commodity trading organization?”

  1. Jo Says:
    March 17th, 2010 at 6:44 pm

    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.
    References :

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