Accounting for Trading Securities (GAAP Accounting for Investments)

Trading securities are a type of financial asset that a company buys and holds primarily for short-term trading purposes. Watch this Video Next ➡️    • Accounting for Available For Sale Securiti...  

Watch the full Investment Accounting Series ➡️    • Accounting for Investments  

👍More on Trading securities ➡️ these are typically debt or equity securities held with the intention of selling them in the near term to profit from short-term price movements. In financial GAAP accounting, trading securities are accounted for in a way to reflect unrealized gains and losses in the income statement. This video will give you a comprehensive overview of how to account for trading security investments based on ASU 2016-01 (generally accepted accounting principles).

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0:00 Introduction
0:18 ASU 2016-01
0:32 Where do you find trading securities on the financial statements?
0:51 What are trading securities?
1:19 Why are there multiple classification?
1:45 What's the Accounting?