i was doing audit of a share broker company in which some of the interest income from margin was present. It was shown as other income in the previous year. Since the interest is earned from depositing the margin to the exchange which is a part of operation of the company. Can i show the interest as other operating income? if yes please clarify me.
1 Replies
Raman Sharma
(@ Accountant)
(125 Points)
Replied 03 June 2013
It can not be said that depositing margin is operation of the company.Because to deposit margin is mandatory for a stock broker comany(As you Know).So i do not personaly think that it should come under operational income.
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