08-14-2010, 06:36 PM
Held for trading term used for those investments, which management concern to trade in stock exchange while held for sale term used for those shares which management intention to hold for a period.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ejaz</i>
<br />We classify investemetns as Held for trading, held to maturity and AFS. Fine, what exactly is the difference between trading and sale? aren't they the same words? doesn't trading mean selling or purchasing a security? so what's the point of having two categories for same purpose?
AFS and HFT are provided for any permanent diminution from P&L right? so wot is permanent dimunition? and how is it different from suplus or deficit? when there is surplus/deficit, we charge P&L for an equivalent amount. Please show the accounting treatment of this.
usually wot type of securities are kept under each category? And which category bankers would most prefer and why?
thanks
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<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ejaz</i>
<br />We classify investemetns as Held for trading, held to maturity and AFS. Fine, what exactly is the difference between trading and sale? aren't they the same words? doesn't trading mean selling or purchasing a security? so what's the point of having two categories for same purpose?
AFS and HFT are provided for any permanent diminution from P&L right? so wot is permanent dimunition? and how is it different from suplus or deficit? when there is surplus/deficit, we charge P&L for an equivalent amount. Please show the accounting treatment of this.
usually wot type of securities are kept under each category? And which category bankers would most prefer and why?
thanks
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