I have a client which invests in Cash For Difference (CFD) instruments. The company buys stocks but pays a margin of 10%. 90% is borrowed from brokers who charge interest. This is different to options. In the financial statements does one record 100% of the value of stocks as turnover, or just the 10%. If I record 100% turnover would be in hundreds of millions of £ when the company would have expended only 10% to buy stocks.
1st Nov 2021
How to record CFD transactions
Recording CFD transactions in financial accounts
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