Holding Gain

Holding Gain

An increase in the value of an asset or a decrease in the value of a liability that occurs without any action on the part of the holder. For example, if the value of one's house increases from $100,000 to $150,000 over three years, one has a holding gain of $50,000 over that period. Holding gains improve one's net worth.
Mentioned in ?
References in periodicals archive ?
Shares in Kingdom Holding gain 2 percent after announcing that it sold its interest in the Fairmont Hotel and Raffles Suites & Residences in Manila for $58.
In the previous example, the holding gain is the $40 increase in the inventory's wholesale value above the original cost of $100, while the marketing profit is the $110 difference between the $250 retail price and the current wholesale value of $140.
Under fair value accounting, Boston Chicken will report an unrealized pre-tax holding gain of $374.
Note that the TS holding gain of $15,000 is reported as a component of income and that these securities are reported on the balance sheet at their fair value of $465,000 at the end of the first quarter of operations.
If reasonable expectations are that the price of land will remain stable in the future, and that sales of two parcels per year for a total of $150,000 can be expected to continue, it is necessary to isolate the realized holding gain included in income and remove it from the earnings base:
The primary difference between accounting for investments held for trading and accounting for available-for-sale investments is that any holding gain or loss to adjust the investment to market value is shown on the income statement for trading shares, while available-for-sale stocks' accumulated holding gains or losses are reported as a separate component of shareholders' equity on the balance sheet.
Thus, as shown in Exhibit 2, comprehensive portfolio income can be calculated to be $7,100 for January 2002, consisting of realized dividend income and interest expense of $140 and $40, respectively, and a $7,000 unrealized holding gain for the increase in value of XYZ stock.
These taxpayers should be advised to take advantage of the deemed sale and repurchase election for those investments having a holding gain on January 2, 2002.
In other cases, the revaluation adjustment is considered a holding gain and could be entered directly into a separate component of equity-like certain foreign currency translation adjustments-or flow through earnings or comprehensive income into equity.
Treasury Notes sold short as compared to an unrealized holding gain of $403,430 on U.
This means that, for available-for-sale securities, the net holding gain or loss would be included as a component of equity on a net-of-tax basis.
Adjustment to Market 2,000 Unrealized Holding Gain 2,000