stock-loan transactions

Liabilities1

1. 405-940Financial Services—Brokers and Dealers405 Liabilities

   This Subtopic addresses liabilities of brokers and dealers in securities, specifically stock-loan and repurchase (repo) transactions entered into to finance investment positions in lieu of a bank loan. Topic 860 supplies the general accounting for whether such transactions are sales or financings. If they are accounted for as financing transactions, the related rebate or interest expense must be presented in the income statement separately from any trading gains or losses.