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Unrealized profit
Asked Aug 9, 2006, 01:16 AM
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2 Answers If a bank has done a service to a company and received in returns shares of that company as payment, is this income considered as |
2 Answers
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| You seem to have stopped talking before finishing your thought. Here is what I think you are saying. A bank performs services for Company XYZ. Instead of Company XYZ paying for the services in cash, they pay by issuing the bank some of its common shares. You are asking if this is unrealized profit? The answer would be no, record that as revenue. The common shares in the place of cash. | ||||
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| Please note that you would have realised your revenue at the time of rendering service to the company so you cannot take the value of shares as your revenue again instead you should now treat these shares as your short term investment & show it in balance sheet... | ||||
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