The fair value change gain or loss is a gain, what is the way for it to enter the income statement?

1. The fair value change profit or loss is a profit, and the way to enter the income statement is through the account of "non-operating income". By presenting the fair value change profit and loss, the income statement comprehensively reflects the company's earnings, which are divided into operating income and non-operating income. Investors can understand the profit or loss of a company due to changes in fair value and its proportion of total earnings, so as to make better analysis and decision-making.

2. Fair value change profit or loss refers to the gain or loss that should be included in the current profit or loss formed by the fair value change of various assets, such as investment real estate, debt restructuring, non-monetary exchange, trading financial assets, etc. That is, the difference between the fair value and the book balance. This item reflects gains or losses due to changes in fair value of assets during the holding period.

Also an item on the new income statement"Fair value change gain"Fill in the basis.

The profit or loss on the change in the value of the fair value shall be shown in the income statement of the fair value change income. （）

a.That's right. b.Mistake.

Correct Answer: True.

Because the fair value change gain or loss is temporary, to be precise, it is a transitional account, and it cannot be regarded as real income before disposal, so it should be transferred to "investment income" at the time of disposal, and the relevant accounting treatment is:

Debit: Change in fair value (profit and loss account).

Credit: Investment income (also a profit and loss account).

Therefore, there is no impact on the profit or loss of the month at the time of disposal, that is, the real impact on the profit or loss is the point at which the fair value changes. The purpose of the treatment of the conversion of fair value change gains and losses into investment income is to provide users with information that the gains and losses incurred due to fair value changes in the trading financial assets held by the enterprise are a holding gains or losses, and have become realized gains and losses at the time of **.

Hello, the interest expense referred to in the income statement for management = financial expenses (by default, they are generated by financial business) - fair value change income - investment income + asset impairment loss (investment income and asset impairment loss are only generated by financial assets), this item is actually the sum of several items in the original income statement, what is the Yuansong project? It is the project that results from financial activities. The mantra for calculation is:

Financial expenses are the starting point, minus income, plus losses, provided that the financial activity is good Zheng Dong. Therefore, the interest expense after processing is actually the financial profit or loss before income tax.

Hello, dear, I'm glad to answer for you, because the fair value change profit and loss is no longer carried forward to investment income. The establishment of the concept is helpful to explore the internal logical relationship between the balance sheet, the income statement and the cash flow statement, and establish an inevitable connection between the operating assets, core profits and the net cash flow generated by the operating activities, so as to facilitate the analysis of the value-added ability of the enterprise's operating assets and the ability to realize the operating results generated by its own business activities. This concept is of great practical significance for the analysis of corporate bank closure statements, market macro conditions, and micro market interest rates.

Hello, dear, I am happy to answer for you: why does core profit not include fair value change gains and lossesAnswer: Dear, because after establishing the concept of core profit, the core profit excluding "fair value change gains and losses" and "investment income" is compared with the net cash flow generated by operating activities (1) Core profit contribution rate = core profit Total profit Core profit growth rate = (core profit in the current period - core profit in the previous period) Core profit in the previous period Core profit is the main profit of profit**, It consists of the profit from the main business and the profit from other businesses.

Therefore, when judging the quality of profits, we should focus on analyzing the proportion of this part of the profits in the total profits of the enterprise and its change trend. Core profit accounts for a significant proportion of total profit, and the growth rate is fast, indicating that the profit quality of the enterprise is relatively high, and it also indicates that the company has more development potential; On the contrary, if the proportion of core profit in the total profit is small or fluctuates greatly, and the growth rate is slow, it means that there may be problems in the profit structure and quality, which should be brought to the attention of the management authorities, and the cause of the core profit should be carefully analyzed, and necessary measures should be taken in time to resolve the possible risks. (2) Core profit to cash ratio = net cash flow from operating activities Core profit This indicator reflects the net cash flow of operating activities corresponding to each yuan of the company's core profit, which reflects the degree of cash protection of the company's core profit and truly reflects the quality of the company's profit.

However, it should be noted that the denominator of this indicator (core profit) must also pay attention to the convergence between the numerator (the net cash flow from operating activities), i.e. the basic items contained in both should be the same. In terms of calculation, the core profit has been deducted from the depreciation of fixed assets, amortization of intangible assets, financial expenses and asset impairment losses for the current period, but not the income tax expense of the enterprise. However, in the cash flow statement, the net cash flow from operating activities does not reflect the depreciation of fixed assets and the amortization of intangible assets, but deducts various taxes and fees paid by the enterprise, and there is no corresponding cash outflow for asset impairment losses.

China's Accounting Standards for Business Enterprises No. 31 - Cash Flow Statement stipulates that the cash paid for interest repayment by enterprises is listed as a financing activity item, and the cash received from investment income belongs to the cash flow generated by investment activities. Therefore, this indicator is only more comparable if the core profit is adjusted to be broadly consistent with the net cash flow from operating activities. Core profit of the same caliber = core profit + depreciation of fixed assets + amortization of other long-term assets + financial expenses + asset impairment loss - income tax expense The closer the adjusted core profit is to the net cash flow generated by operating activities, the higher the quality of the company's current operating profit; The greater the adjusted core profit is greater than the net cash flow generated by operating activities, the lower the quality of the company's core profit in the current period, and the greater the potential loss risk in the company's profit.