What Is Unrealized Loss?

Unrealized Loss refers to the loss obtained by continuing to hold assets without realizing the assets and then using the funds obtained.

Unrealized loss

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Unrealized Loss refers to the loss obtained by continuing to hold assets without realizing the assets and then using the funds obtained.
Chinese name
Unrealized loss
English name
Unrealized Loss
Definition
Cash back by continuing to hold assets
Attributes
Economic behavior
Unrealized loss
The English comment is: (Unrealized Loss)
Definition: It refers to the loss obtained by continuing to hold assets [1] without cashing out the assets and then using the funds obtained.
The unrealized profit or loss of inventory at the end of the period refers to the unrealized profit or loss generated by the parent company, subsidiaries within the enterprise group, or between subsidiaries due to the sale of goods that have not been sold to the outside world at the end of the period.
From the perspective of a single enterprise [2], since the parent company and the subsidiary are independent legal persons, when the inventory sales business occurs between them, the sales company's account confirms the sales profit or loss. However, from the perspective of the enterprise group, as long as the internally traded inventory has not been sold to the outside world, it will not be realized, so the profit and loss will be overstated. On the other hand, the end-of-term inventory purchased from other companies within the group is recorded at the internal transfer price. The cost of inventory contains unrealized gains and losses.

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