- Holding gains
Holding gains ("losses") are generally defined as increases ("decreases") in the
replacement costs of the assets held during a given period. Fact|date=February 2007 Holding gains and losses accrue to the owners of assets and liabilitiespurely as a result of holding the assets or liabilities over time, without transforming them in any way.
For example, if a company holds bottles of wine in its inventory and that specific wine becomes more expensive on the market, the replacement cost of the wine in the inventory increases as it has become more expensive for the company to replace its current stock of wine. Thus, by merely holding the wine in the inventory, the assets of the company have risen in value.
There are different types of holding gains and the types depend on the accounting system the company uses or may use. Holding gains are most frequently used in
inflationaccounting and incomemeasurement. For instance holding gains or losses can result from depreciation, stock, gearingadjustments or monetary working capitaladjustments.
Holding gains can be realized (e.g., sold goods) or unrealized (e.g. stock).
Wikimedia Foundation. 2010.
Look at other dictionaries:
holding period — holding pe·ri·od n: the length of time a taxpayer holds property for purposes of determining if any gain realized or loss incurred from it is long term or short term Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. holding period … Law dictionary
Holding period return — In finance, holding period return (HPR) is a measurement of return on an asset or portfolio. It is one of the simplest measures of investment performance. HPR is the percentage by which the value of a portfolio (or asset) has grown for a… … Wikipedia
Capital gains tax in Australia — Capital Gains Tax (CGT) in Australia applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most… … Wikipedia
Capital gains tax — A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds,… … Wikipedia
Capital gains tax in the United States — In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income. Capital gains are generally taxed at a preferential rate in comparison to ordinary income.… … Wikipedia
Capital Gains Yield — The price appreciation component of a security s (such as a common stock) total return. For stock holdings, the capital gains yield will be the change in price divided by the original (purchase) price. Calculated as: Where: P0 = Original price of … Investment dictionary
Twelver Shi`ism/Holding area — Ithna Ashariyya ( ar. اثنا عشرية Ithnāˤashariyyah ), also known as Twelver Shi ism, is the largest denomination within the Shi ite sect of the Islamic faith. An adherent of Twelver Shi ism is most commonly referred to as a Twelver , which has… … Wikipedia
accounting — /euh kown ting/, n. 1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.… … Universalium
comprehensive income — The total of the operating profits and the holding gains of a company for an accounting period. The operating profit is the difference between the operating income and expenditure. The holding gains result from any increases in the value of… … Accounting dictionary
Constant purchasing power accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia