Loss on Investments Sale

Code: 5322
👁 Views: 89

Account Information

Financial Statement Income Statement
Normal Balance Debit

Definition

Losses incurred when investments are sold below their cost

Common Journal Entries

Loss on sale of shares

Dr. Bank Account
Dr. Loss on Investments Sale
Cr. Short Term Investments

Loss on mutual fund liquidation

Dr. Bank Account
Dr. Loss on Investments Sale
Cr. Mutual Funds

Transfer investment losses to income

Dr. Income Summary
Cr. Loss on Investments Sale

Loss on investment impairment

Dr. Loss on Investments Sale
Cr. Long Term Investments

Loss on sale of shares

Dr. Bank Account
Dr. Loss on Investments Sale
Cr. Short Term Investments

Loss on mutual fund liquidation

Dr. Bank Account
Dr. Loss on Investments Sale
Cr. Mutual Funds

Transfer investment losses to income

Dr. Income Summary
Cr. Loss on Investments Sale

Loss on investment impairment

Dr. Loss on Investments Sale
Cr. Long Term Investments

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 21 / IAS 16 / IFRS 9 / IAS 36 Multiple Standards
US GAAP ASC 830 / ASC 360 / ASC 320 / ASC 326 / ASC 350 Multiple Standards

❓ Frequently Asked Questions

Q: What is the difference between loss on asset sale and loss on asset disposal?

A: Loss on sale: when the asset is sold for less than its carrying amount. Loss on disposal: when the asset is retired without sale (e.g., destroyed or donated) and the loss equals the carrying amount.