Mutual Funds
Code: 1252
👁 Views: 140
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Units in mutual funds managed by financial institutions
Common Journal Entries
Invested in mutual fund
Dr. Mutual Funds
Cr. Bank Account
Received fund dividends
Dr. Bank Account
Cr. Dividend Income
Sold fund units at a gain
Dr. Bank Account
Cr. Mutual Funds
Cr. Gain on Investment Sale
Impairment of mutual fund units
Dr. Impairment Loss
Cr. Mutual Funds
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IFRS 9
Financial Instruments
US GAAP
ASC 946
Financial Services - Investment Companies
❓ Frequently Asked Questions
Q: What are mutual funds?
A: Units in mutual funds managed by financial institutions, investing in a diversified portfolio of securities.