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?
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1 Response
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 on January 29th, 2010 at 11:43 am
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