Victoria Company

Victoria Company

a. How should Victoria account for the sale of the securities from each portfolio? Why?

Securities that are considered for sale by the company at the time of investment are known trading securities. As trading securities are found highly liquid thus these securities are classified under current assets in balance sheet of the company. Referring to the case of Victoria Company, the accounting of the trading securities needed to be done on the realized gain or loss during the period. In addition to this the recording of revenue earned from sale of securities is undertaken in statement of cash flows ...