Question : How would the margin requirement be accounted by a commodity trading organization?
If you are a commodity trading organization trading futures and the brokerage needs a margin requirement — how is that accounted for in the financial statements? Is it an expense in the income statement?
commodity trading

Best answer:

Answer by Jo
The amount with the futures brokers, including the margin requirement is accounted for as “other receivables”, maintained in a sub account called “Amounts owning from brokers”. It is a balance sheet account, under current assets.