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Consolidated Statement of Cash Flow?
Parent company buys Subsidiary and merges into one. When preparing Statement of Cash Flow, I have Trading Securities Portfolio (at market) increase by $15,000. The additional information is that no trading securities were sold nor were any investments added to the portfolio. How can I treat with it? Will it appear on the operating section or investing section, or financing? I keep reading the book but the concept is too limitted. Is there any body has some idea about it? I need help badly. Thanks
1 month ago - 1 answers
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If you have ascertained that the securities are held for trading (as opposed to Available For Sale or Held to Maturity), any adjustments to reflect fair value are taken to income statement. So in your case, you'll debit Trading Securities and credit income statement (fair value changes). But why are you revaluing the securities when preparing the cash flow statement? They should have been revalued when you prepared the balance sheet.
by Sandy
1 month ago
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