Banking

Trading Securities — Fair Value Gain

Revaluing the bank's trading bond/equity portfolio upward at month-end.

Account NameTypeDebit ($)Credit ($)
Trading Securities (FVTPL)Asset (+)25,000.00-
Fair Value Gain on Trading SecuritiesRevenue (+)-25,000.00

💡 Accountant's Note

Trading securities are measured at Fair Value Through Profit or Loss (FVTPL). Any change in market value goes directly to the income statement. Banks with large proprietary trading books have significant P&L volatility from this.

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